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Income tax refund formed part of deceased’s estate for IHT purposes

By Mark McLaughlin, February 2026

The need to make a tax return did not prevent the right to an income tax refund from being property at the moment of death for IHT purposes, and the relevant valuation point of the refund was the open market value at the time of death.   

Summary 

The need to make a tax return did not prevent the right to an income tax refund from being property at the moment of death for inheritance tax (IHT) purposes, and the relevant valuation point of the refund was the open market value at the time of death.   

Background 

For the period 6 April 2020 to 18 December 2020, an individual (ET) received income from dividends and UK pensions. Since at least 2009, her son (RT, the executor of ET’s estate) made and delivered her tax returns as an attorney. On 18 December 2020, ET

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