Income tax for Estate in administration period

Does income accrued at date of death suffer both IHT and IT?

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Gross interest accrued to date of death is included as an asset of the Estate and IHT is charged at 40% on this.  When the interest is paid to the executors, the Estate then (apparently) pays income tax on the full amount received including the accrued amount on which IHT has been paid.  IThis seems to be double taxation on interest accrued to date of death.  I can't find anything to suggest that the interest accrued to date of death can be excluded from the interest charged to income tax.  Have I missed something?

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By Wanderer
07th Nov 2019 17:04

Nope, nothing missed, you are correct.
Not convinced it is double taxation, I used to wonder about this however once you get your mind around it you realise that it is not really different to interest received prior to death.

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By Tax Dragon
07th Nov 2019 17:31

The only relief for the IHT is against higher rate tax (and now the various other rates above basic rate) and is provided by s669 ITTOIA.

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