My client's husband died suddenly during the 13/14 tax year. He was self employed. His wife was his executrix and sole beneficiary.
She kept his self employed business running during the administration period. The trade carried on for just under 9 months before the business was incorporated.
We have prepared accounts relating to the 9 month period. The taxable profits for this period were £100k (approx) and the details will be returned to HMRC on a Trust and Estate Tax Return.
We understand that the self employed profits during this period will be taxed at 20%.
My query relates to the correct disclosure on the wife's tax return in relation to the trust income.
Am I correct in thinking that she should declare the taxable self employed profit figure, net of 20% tax? So in this case she should declare £80,000 (approx) in box 16 on supplementary Trust page T2?
Thanks in advance for any assistance contributors can offer.