AP4364 - Deceased Persons: Bank/building society interest received

Only the interest which was either paid or credited prior to the date of death should be regarded as the deceased's income.

Any tax deducted at source is available for repayment, depending on the level of total income and allowances for the period.

Any interest which for example accrued between the bank/building society's last normal accounting date and the date of death, but which was not paid or credited until after the date of death, will be the income of the personal representative. This must not be apportioned to and from the date of death.

Any tax deducted at source is not normally available for repayment to the personal representatives. (TSEM7355, TSEM7368 and TSEM7456).

Where a deposit receipt is issued by a Scottish or Northern Irish bank, and the deposit is uplifted after the depositor's death by his personal representatives, normally no part of the interest is deemed to be the income of the deceased

Taxed income and gains are treated as income of the deceased if it was paid or credited on or before the date of death