What to do about tax and benefits after a death
In this section:
- What to do about tax and benefits after a death
What to do about tax and benefits after a death
After a death, there’s a lot to manage at a distressing time. However, it's important to deal with tax and benefit affairs as soon as you can so that you receive any money you’re entitled to and pay any taxes on time. Sometimes timescales are short.
On this page:
- What to do after a death - checklist
- Contacting the deceased's Tax Office
- Cancelling tax credits or benefits
- Financial help you might be entitled to
- If you’re the ‘personal representative’ of the deceased’s estate
- If you’re the trustee of a trust established by the deceased
- If you’ve inherited money, assets or property
- Useful contacts
- More help
What to do after a death - checklist
When someone dies, there are many people to inform and things to do - often in the first few days. You might find it useful to first gather some basic information about the deceased, such as their address, National Insurance number and date of birth.
See a checklist of what to do when someone dies - Directgov website
Contacting the deceased's Tax Office
Any close relative of the deceased can tell HM Revenue & Customs (HMRC) about the death. This should be done as soon as possible so that loved ones don't receive mail that might cause distress.
You'll find the deceased's Tax Office details on any tax paperwork from HMRC, such as a PAYE Coding Notice or a Self Assessment tax return. Or you could ask the deceased’s last employer for the information.
Alternatively, you can use the link below to contact the Tax Office nearest to where the deceased lived or where they worked. The Tax Office will need the deceased's full name and address and National Insurance number, if possible.
If the deceased was self-employed
If the person who died was self-employed, you should also contact the National Insurance Contributions Office to stop payments being collected.
Contact the National Insurance Contributions Office
Married Couple's Allowance
If you or your spouse or civil partner were born before 1935 you may have been claiming the Married Couple's Allowance. If one of you dies, you'll still get the Married Couple’s Allowance you’re due for that tax year.
Cancelling tax credits or benefits
If the deceased was receiving any tax credits or other benefits, you'll need to tell the relevant government agency the date of death, so that payments don't need to be paid back later.
Tax credits
If you're claiming tax credits - or your spouse or partner was - and your child, spouse, or partner dies, your payments may change. You'll need to tell the Tax Credit Office within one month of the death. If you don't, you might get too much money and have to pay it back or not get all the money you’re owed.
How and when to tell the Tax Credit Office about changes
Child Benefit
If your child has died, Child Benefit payments will carry on for a short while after the death, and could help with extra costs at this difficult time.
If your child died before you'd claimed Child Benefit for them, you can still do so, and Child Benefit may be paid for up to eight weeks. But you'll need to make your claim within three months of the date your child died to get payment for the full eight weeks.
Read more about Child Benefit when a child dies
Child Trust Fund payments
When a child dies, any money in their Child Trust Fund account - including any payments they have received from the government - will go to whoever inherits their estate. This is usually the parents.
More about Child Trust Fund payments when a child dies
Other benefit payments
Not all benefits are dealt with by HMRC. You can find out who to contact by looking at paperwork belonging to the deceased. Alternatively, follow the link below to find contact details for government agencies and local councils.
Find contact details for government agencies and local councils - Directgov website
Financial help you might be entitled to
Depending on your circumstances, you might be entitled to financial help after someone dies.
Bereavement benefits
You may be able to claim certain benefits and one-off payments if you lived with or were dependent on the deceased. There are time limits, so you need to apply as soon as possible.
Some bereavement benefits are taxable, such as benefits paid weekly. If you receive a taxable bereavement benefit, you’ll need to let your Tax Office know.
Find out more about bereavement benefits on the Directgov website
See when bereavement benefits are taxable in the guide to taxable and non-taxable income
Guardian's Allowance
If you've been made the guardian of a child whose parents have died, you might qualify for Guardian's Allowance.
Find out if you qualify for Guardian's Allowance
If you're the ‘personal representative’ of the deceased’s estate
When someone dies, the ‘personal representative’ is responsible for settling the deceased's financial affairs and for dealing with their estate. In England, Wales and Northern Ireland this person is called the ‘executor’ (if the deceased left a will) or the ‘administrator’ (if there’s no will). In Scotland the term executor is used whether or not there's a will. The term personal representative covers both roles as the responsibilities are the same.
More about the responsibilities of personal representatives
Find out what to do if there's no will on the Directgov website
Claiming back Income Tax on behalf of someone who has died
The deceased might have paid too much Income Tax in the tax year in which they died. If so, and you're the personal representative, you'll be able to claim a tax refund on their behalf. You'll also be able to claim a refund if they paid too much tax in any of the previous five tax years.
More about claiming back Income Tax if someone has died
Settling the tax affairs of someone who has died
As the personal representative you'll need to settle the deceased's tax affairs up to the date of death. You'll also need to pay any tax due on the deceased's estate.
Most tax liabilities are relatively straightforward and can be dealt with by the deceased's Tax Office. They may send you form R27 to complete for the period up to the date of death when they know about the death. If any tax is due you may be able to make an informal payment without having to fill out a Self Assessment tax return.
You'll also need to pay Income Tax on income that arises on the assets in the deceased’s estate during the period that runs from the day after the date of death, until you finally settle all of the financial affairs of the estate. You may be able to make an informal payment of this tax too.
Find out more about tax when someone dies if you are the personal representative
Read about form R27 and Income Tax if someone has died
How to deal with a tax return for someone who has died
Handling Capital Gains Tax after a death
There’s no Capital Gains Tax to pay at the time of death. But if you inherit assets - whether or not you're the personal representative - you'll have to work out the capital gain or loss if you sell or dispose of those assets at a later date.
Find out more about Capital Gains Tax when someone dies
Probate and Inheritance Tax
Probate (confirmation in Scotland) is the system that gives a personal representative the legal right to administer and distribute the estate according to the deceased’s wishes. Probate may not be needed if the estate is a low-value estate or passes to the surviving spouse/civil partner.
Inheritance Tax forms are part of the probate process, even if the estate doesn’t owe Inheritance Tax. (Inheritance Tax is usually only due if the estate - including any assets held in trust and gifts made within seven years of death - is valued over the Inheritance Tax threshold of £325,000 in 2009-10.)
More about Inheritance Tax and the probate process
If you're the trustee of a trust established by the deceased
The deceased's will, may have provided for some or all of their assets to go into a trust when they died. Or part of their estate may already be held in a trust that they set up during their life. The responsibilities of a trustee are different to those of a personal representative, although sometimes the same person will take on both roles.
More about trusts and how they work
Your responsibilities as a trustee following a death
If you’ve inherited money, assets or property
If someone has died and left you money, assets or property, you might, in certain situations have to pay tax.
Find out about tax when you receive an inheritance
Useful contacts
Contact the Child Benefit Office
Contact the Tax Credits Helpline
Contact the Probate and Inheritance Tax Helpline
Look up contact details for all Tax Offices
Help from the Cruse Bereavement Care website
Get support from the Child Bereavement Charity website
Get advice from the Citizens Advice Bureau
More help
Find out more about tax when someone dies
More about death and bereavement on the Directgov website
Read the guide to benefits and money after a death on the Directgov website
What to do when an employee dies - Businesslink website
What to do when a business partner dies - Businesslink website
