Bank and building society interest - Example 9

Christine is not a taxpayer, and has registered her savings account for interest without tax taken off. Christine usually receives her interest on the 1 June every year.

But because she died in May 2007 all of the interest for that year had tax taken off. This is because the interest now belongs to Christine’s estate and not Christine.

In her will she left half of her estate to her son who is a taxpayer, and half to her daughter who isn’t a taxpayer. Christine’s daughter can claim back the tax taken off her share of the interest distributed to her by the estate.