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Specific legacies are not taxable. Any income derived from such a legacy is taxable eg interest received from a bank account. Such income should be entered in the appropriate sections of the main tax return.
Residuary beneficiaries should receive a statement from the personal representatives showing the income that is taxable. Such income should be entered under trusts, above.
Enter the details of the estate on the provider record:
Most of the information is optional. The deceased name and interest type must be entered, click on the magnifying glass to select the interest type. from the following list,
Limited interest.
Absolute interest.
Discretionary interest.
Enter details of income on the payment record:
Rate of tax - select from Basic rate, Savings rate or Dividend rate.
Net income received - enter the income received net of tax.
Tax deducted at source - IRIS will automatically calculate the tax deducted figure.
Gross income - IRIS will automatically complete the gross income field based upon the net and tax amounts.
Foreign tax paid - if any foreign tax is paid this information will be copied to the foreign pages. Note, IRIS does not store rates of withholding tax, the amount entered should be limited to the rate of withholding tax where a double taxation agreement exists between the UK and the country in question.
Date income received - this field may be left blank, if completed ensure the date used falls within the current tax year.
Country - enter the country that income was paid from if claiming foreign tax credit relief.
Claim Foreign Tax Credit Relief (Y/N) - enter Y to obtain a tax credit in the computation for any foreign tax paid. For more details on this type of relief click here.
