Income Tax Act 2007 section 41

Allowances in year of death

Section 41 confirms that personal allowances are not reduced or lost when an individual dies part-way through a tax year.

• All personal allowances under this chapter are given in full for any tax year, including the year of death.
• The allowance is not reduced on account of death, even if the individual dies on the first day of the tax year (6 April).
• Age-related personal allowances (formerly available for those reaching 65 or 75) were similarly unaffected if death occurred before the relevant birthday — though these provisions were later repealed by Finance Act 2012.
• The rule ensures that executors and personal representatives can claim the full annual allowance when completing the deceased's final tax return.