Income Tax (Trading and Other Income) Act 2005 section 653

Meaning of "the administration period" and "the final tax year"

Section 653 defines two key terms used throughout the chapter on taxation of deceased estates: "the administration period" and "the final tax year".

• The administration period runs from the date of death until the estate's administration is complete
• In Scotland, completion is specifically defined as the point when liabilities are discharged and the free balance for beneficiaries has been ascertained
• Income arising on the date of death is generally treated as the deceased's income, but income generated by personal representatives on that same date belongs to the estate
• The final tax year is simply the tax year in which the administration period ends