Tax After Bereavement: Dealing With a Deceased Person’s Tax Affairs

Dealing with tax after bereavement is one of the many difficult tasks that falls to family members or executors when someone dies.

Understanding the tax after bereavement process can help you navigate HMRC requirements during an already overwhelming time.

Even if the deceased had straightforward finances, there are tax after bereavement steps you must take.

HMRC needs to know about the death so they can close the tax record, calculate any final tax due, and issue any refunds owed to the estate.

In many cases, the estate is entitled to money back, making it important to understand your tax after bereavement obligations.

If the deceased was self-employed, a landlord, or had multiple sources of income, the tax after bereavement process may be more complex.

Outstanding Self Assessment returns still need filing, and there are specific deadlines to follow.

This tax after bereavement guide explains what needs to be done, step by step.

From notifying HMRC about the death to claiming any HMRC tax refunds owed to the estate, we cover the bereavement tax process in plain terms.

Tax After Bereavement: Who Is Responsible?

When someone dies, their tax affairs become the responsibility of their personal representative. This is either:

• The executor – if the deceased left a will naming someone to handle their estate
• The administrator – if there was no will, usually the closest family member who applies to manage the estate

The personal representative must ensure that all outstanding taxes are paid and any refunds owed to the estate are claimed.

This applies even if you are grieving and find the process overwhelming. You can appoint a solicitor or accountant to act on your behalf if needed, and their fees can be paid from the estate.

Step 1: Notify HMRC About the Death

The first thing to do is let HMRC know that the person has died. The easiest way is through the Tell Us Once service.

Using Tell Us Once

When you register the death at a register office, you will be offered a unique reference number for the Tell Us Once service.

This allows you to notify multiple government departments in one go, including:

• HMRC (for tax, benefits, and tax credits)
• Department for Work and Pensions (for state pension and benefits)
• DVLA
• Passport Office
• Local council

You can use Tell Us Once online at gov.uk/tell-us-once or by phone. The service is available in England, Scotland, and Wales.

If You Cannot Use Tell Us Once

If Tell Us Once is not available or you did not use it, contact HMRC directly:

• Bereavement helpline: 0300 322 9620 (for informal estates and tax affairs up to date of death)
• Deceased estates helpline: 0300 123 1071 (for formal estates requiring Self Assessment during the administration period)

Have the following information ready:

• The deceased’s full name and address
• Their National Insurance number or Self Assessment UTR (Unique Taxpayer Reference)
• Date of death
• Your name and contact details as the personal representative

Postal address (from 1 July 2025): Bereavement Services, HM Revenue & Customs, BX9 2BS

Step 2: Check What Tax Years Need Sorting

When someone dies, there are typically two periods to consider:

1. Tax up to date of death – Income they earned from the start of the tax year until the day they died
2. Administration period – Any income received by the estate after death but before assets are distributed to beneficiaries (for example, rent from a property or dividends from shares)

HMRC will review the deceased’s records and write to the personal representative to explain what needs to be done. For most straightforward estates, only the tax up to date of death needs finalising.

Common Scenarios

Employed or receiving pension under PAYE: HMRC will calculate whether a refund or additional tax is due based on the final pay and tax figures from employers and pension providers. You should receive a P800 tax calculation.

Self-employed or landlord: Outstanding Self Assessment tax returns will need to be filed. HMRC will re-issue any pending returns to the personal representative.

Multiple sources of income: HMRC may need to reconcile income from different sources before determining the final tax position.

Step 3: Claiming Tax Refunds After Bereavement

People often overpay tax in the year they die. This is because PAYE spreads your personal allowance across 12 months.

If someone dies part-way through the year, they may not have used their full allowance.

Why Overpayment Happens

The deceased receives a full personal allowance for the tax year of death, not a reduced amount.

If they died early in the tax year having only received a few months of income, they may have paid more tax than necessary.

Example: Brian died in July 2025. He had received four months of pension income totalling £8,000, with £1,200 tax deducted. His full personal allowance is £12,570.

Since his income was below the allowance, all £1,200 of tax should be refunded to his estate.

How Tax Refunds Are Paid

HMRC will send a P800 tax calculation to the personal representative showing any refund due. If there is no P800, contact the bereavement helpline to request a review.

The refund is paid to the estate, not directly to beneficiaries. It becomes part of the estate assets and is distributed according to the will or intestacy rules.

Important: Any tax refund owed to the estate is itself part of the estate for Inheritance Tax purposes. A tribunal case (Thomas v HMRC, 2025) confirmed that the right to a tax refund counts as an asset even if the refund had not yet been calculated at the date of death.

Step 4: Filing Self Assessment After Bereavement

If the deceased was registered for Self Assessment, any outstanding tax returns still need to be filed.

Tax Returns Due at Death

If the deceased had not filed their tax return for the previous tax year, HMRC will re-issue the return to the personal representative. A final return covering the period from 6 April to the date of death will also be required.

Example: Alfred died on 1 December 2025. He had not yet filed his 2024/25 return (due by 31 January 2026). His son John, as personal representative, will receive:

• A re-issued 2024/25 return to complete
• A 2025/26 return covering 6 April to 1 December 2025

Deadlines for Filing

HMRC usually allows three months and seven days from the date they issue the return to the personal representative. This is more generous than the standard January deadline.

If you need more time, contact HMRC to request an extension. They are generally understanding about the circumstances.

Paper Returns Only

HMRC does not accept electronic Self Assessment returns from personal representatives for deceased taxpayers.

Returns must be filed on paper. You can request the forms from the bereavement helpline or download supplementary pages from gov.uk.

Penalties and Interest

If the deceased had unfiled returns or unpaid tax, HMRC should cancel any late filing penalties that accrued before death. Interest on unpaid tax may still apply but can often be negotiated.

If you discover the deceased owed significant tax, contact HMRC as soon as possible. It is better to engage proactively than to wait for HMRC to chase the estate.

Step 5: Deal With the Administration Period (If Applicable)

If the estate receives income after the date of death—before assets are transferred to beneficiaries—this is the administration period.

The tax treatment depends on whether the estate is classed as simple or complex.

Simple Estates

A simple estate meets all of these criteria:

• Gross value on the Grant of Probate under £2.5 million
• Total Income Tax and Capital Gains Tax due is less than £10,000
• No more than £500,000 of assets sold during administration

For simple estates, you can report income informally by writing to HMRC with a breakdown of income and tax payable. No formal tax return is needed for the administration period.

Complex Estates

If the estate exceeds the simple estate thresholds, you must register for Self Assessment and file returns for the estate during the administration period.

Contact the deceased estates helpline (0300 123 1071) for guidance.

Marriage Allowance After Bereavement

If the deceased was married or in a civil partnership, Marriage Allowance may still be relevant.

What Is Marriage Allowance?

Marriage Allowance allows one spouse to transfer £1,260 of their personal allowance to the other, reducing the recipient’s tax bill by up to £252 per year. It applies where:

• One partner earns below the personal allowance (currently £12,570)
• The other is a basic rate taxpayer (earning up to £50,270)

Claiming After a Spouse Dies

You can claim Marriage Allowance after your spouse has died, provided you met the eligibility criteria while they were alive. This includes backdating claims for up to four years.

If the higher earner died: The surviving lower-earning spouse (or the estate’s personal representative) should contact HMRC’s income tax helpline to claim.

If the lower earner died: Their personal representative can elect to transfer the allowance to the surviving spouse for the year of death and up to four previous years.

Example: Maria transferred part of her personal allowance to Josef under Marriage Allowance. Maria died in October 2025.

Josef continues to receive the Marriage Allowance benefit until the end of the 2025/26 tax year. Maria’s estate will have her full personal allowance reinstated for calculating any tax due up to her date of death.

How to Claim

Call HMRC on 0300 200 3300 if your partner has died and you want to claim or backdate Marriage Allowance. You cannot use the online Marriage Allowance service after a death.

Married Couple’s Allowance After Bereavement

Married Couple’s Allowance (MCA) is different from Marriage Allowance and applies only where at least one spouse was born before 6 April 1935.

If the spouse claiming MCA dies and does not use the full allowance for the year, the unused portion transfers automatically to the surviving spouse.

Check with HMRC that this has been applied to your tax position.

Blind Person’s Allowance Transfer

If the deceased was receiving Blind Person’s Allowance, the unused portion for the current tax year can be transferred to the surviving spouse or civil partner.

Contact HMRC on 0300 200 3301 to request this.

Inheriting Income and Your Own Tax Position

When you inherit assets that generate income, your own tax position may change.

New Income Sources

If you inherit:

• A rental property → You will need to report rental income
• Shares or investments → Dividend income becomes taxable
• A business → Profits become taxable

You may need to register for Self Assessment if you did not previously complete a tax return.

The registration deadline is 5 October following the end of the tax year in which you first receive the income.

ISAs and Inheritance

ISAs lose their tax-free status on death. A surviving spouse can inherit an additional ISA allowance equal to the value of the deceased’s ISA at date of death (or when the ISA is closed, if later).

This must be used within three years of the death.

Inheritance Tax After Bereavement

Inheritance Tax (IHT) is a separate matter from income tax and is not covered in detail here. However, be aware:

• IHT may be due if the estate exceeds the nil-rate band (currently £325,000, or £500,000 if the family home passes to direct descendants)
• Spouses and civil partners can inherit free of IHT due to the spousal exemption
• Unused nil-rate band can transfer to a surviving spouse
• IHT must usually be paid within six months of death to avoid interest

For estates where IHT is due, you will need to complete form IHT400 and may need professional advice.

Beware of Bereavement Tax Scams

Sadly, scammers target bereaved families. HMRC will never:

• Email or text you asking for bank details
• Ask for payment via gift cards or cryptocurrency
• Threaten immediate arrest or deportation

Genuine HMRC correspondence arrives by post or through secure online accounts.

If you receive a suspicious communication, do not respond. Report it to HMRC’s phishing team at [email protected].

Common Tax After Bereavement Mistakes

Not notifying HMRC promptly: Delays can mean incorrect tax codes continue to be used or benefits are overpaid, creating debts against the estate.

Assuming no tax return is needed: Even if the deceased seemed to have simple affairs, check with HMRC whether any returns are outstanding.

Missing the four-year deadline: Refunds can only be claimed for the current tax year plus the previous four. Act promptly to avoid losing money.

Not checking Marriage Allowance: Many surviving spouses miss out on backdated claims worth up to £1,000.

Distributing the estate too early: If you pay out to beneficiaries before settling all tax liabilities, you may become personally liable for unpaid tax.

Getting Help With Tax After Bereavement

If you need help with bereavement tax matters:

• HMRC bereavement helpline: 0300 322 9620 (informal estates)
• HMRC deceased estates helpline: 0300 123 1071 (complex estates needing Self Assessment)
• Tax Help for Older People: Free advice for those over 60 on low incomes
• Solicitors and accountants: Professional help can be paid from the estate

HMRC also has an online bereavement guide at gov.uk that walks you through the steps based on your specific situation.

Dealing with a deceased person’s tax affairs can feel overwhelming, especially while grieving. Several charities and organisations offer free help.

Free Tax Advice

• TaxAid – Free, confidential tax advice for people on low incomes (generally under £28,000 per year). TaxAid merged with Tax Help for Older People in July 2025, so this is now the main charity for free tax help regardless of age. They can help with HMRC disputes, tax debt, and completing returns.

Website: https://taxaid.org.uk

• Citizens Advice – General advice on benefits, probate, and practical steps after a death. They can signpost you to specialist tax help if needed. Find your local bureau or use the national website.

Website: https://www.citizensadvice.org.uk

• Low Incomes Tax Reform Group (LITRG) – Part of the Chartered Institute of Taxation. They do not provide individual casework but have excellent free online guides covering bereavement tax, trusts, and estates in detail.

Website: https://www.litrg.org.uk

• MoneyHelper – Government-backed service offering guidance on inheritance tax, probate, pensions after death, and managing money during bereavement.

Website: https://www.moneyhelper.org.uk

Bereavement Support

• Cruse Bereavement Care – Emotional support and grief counselling for anyone who has been bereaved.

Helpline: 0808 808 1677

Website: https://www.cruse.org.uk

• Marie Curie – Support for those bereaved after terminal illness, including practical help with benefits and finances.

Helpline: 0800 090 2309

Website: https://www.mariecurie.org.uk

• Age UK – Advice for older people on all aspects of bereavement, including financial and practical matters.

Helpline: 0800 678 1602

Website: https://www.ageuk.org.uk

Finding Professional Help

If the estate is complex or you need specialist advice, consider:

• STEP (Society of Trust and Estate Practitioners) – Directory of solicitors and advisers who specialise in wills, trusts, and estate administration.

Website: https://www.step.org

• Chartered Institute of Taxation – Find a qualified tax adviser in your area.

Website: https://www.tax.org.uk

• The Law Society – Find a solicitor for probate and estate matters.

Website: https://www.lawsociety.org.uk

Professional fees can be paid from the estate, so do not let cost deter you from seeking help if the estate is valuable or complicated.

HMRC Helplines

• Bereavement helpline (informal estates): 0300 322 9620
• Deceased estates helpline (complex estates): 0300 123 1071
• Income tax helpline (Marriage Allowance claims): 0300 200 3300

HMRC also has an online bereavement guide at gov.uk that walks you through the steps based on your specific situation.

Tax after Bereavement Frequently Asked Questions

How long does HMRC take to process a deceased person’s tax?

Timescales vary. For straightforward PAYE cases, HMRC may issue a P800 within a few weeks of receiving final pay information from employers. For complex estates or Self Assessment cases, it can take several months.

Can I claim a tax refund if the deceased overpaid in previous years?

Yes, if the overpayment falls within the four-year time limit. For example, in 2025/26, you can claim refunds back to 2021/22. Check the deceased’s records for any years where tax may have been overpaid.

What if the deceased owed HMRC money?

Debts to HMRC must be paid from the estate before assets are distributed to beneficiaries. If the estate cannot cover the debt, HMRC may write off the balance, but this depends on the circumstances.

Do I need probate to deal with the deceased’s tax?

Not always. HMRC can often deal with tax matters before probate is granted, especially for simpler estates. However, they may require probate before releasing large refunds.

What happens to the deceased’s Government Gateway account?

The deceased’s online account cannot be accessed by anyone else after death. Personal representatives must deal with HMRC by phone or post.

Can I continue claiming Marriage Allowance if my spouse has died?

The allowance continues until the end of the tax year in which your spouse died. After that, it stops. However, you can backdate claims for any eligible years within the four-year limit.