Taxes Management Act 1970 section 40

Assessment on personal representatives

Section 40 sets out the time limits within which HMRC can raise tax assessments on the executors or administrators of a deceased person in respect of income tax or capital gains tax arising before death.

• Assessments on personal representatives for a deceased person's pre-death income or chargeable gains must be made within 4 years of the end of the tax year in which the person died
• Where a loss of tax was brought about carelessly or deliberately by the deceased (or someone acting on their behalf), HMRC can assess any tax year ending not earlier than 6 years before the death, but the assessment must still be made within 4 years of the end of the tax year of death
• The section applies to income tax and capital gains tax only
• Where an economic interest grouping is involved, any act or omission by the grouping or any of its members is treated as the act or omission of every member of that grouping