Income Tax (Trading and Other Income) Act 2005 section 240

Liability of personal representatives if person liable dies

Section 240 deals with what happens to the tax liability on adjustment income when the person who would have owed that tax dies, transferring both the obligation and the right to make elections to their personal representatives.

• When a person who would have been liable to tax on adjustment income dies, their personal representatives take over responsibility for that tax liability.
• The tax is assessed and charged on the personal representatives rather than the deceased individual.
• The tax owed becomes a debt due from and payable out of the deceased's estate.
• The personal representatives may make any election under this chapter that the deceased could have made if they were still alive.