Part of the estate has been left in trust and the remainder has been left to the widow. A lump sum death benefit of £117,000 has been paid to the deceased's estate net of 45% tax. The widow has been led to believe that some or all of the tax will be repayable. Her financial advisor thinks that the amount is treated as though it were trust income paid out net of tax at 45%. It seems then that the money will be treated as part of her income and any tax overpaid will be reclaimable.
1.Does anyone know if this is correct?!
2.If it is, do you know where the income should be entered on the tax return?
3.Is there anyway of getting part at least of the tax repaid before the end of the tax year in which the income is paid out to her?