tax liability for a rental property of an estate between date of death and Grant of Probate

I am the Executor to my late partner's Estate. His will leaves all his goods and property including his home, to his beneficiaries, his three sons. I understand that as his Executor I have the legal authority to rent the property with the rental income being for the benefit of his beneficiaries. HMRC are assessing his estate for IHT. If I rent the property whilst HMRC are considering the IHT liability and until Probate is granted, what tax liability is incurred, if any, and who is liable for it? thanks

Hi,

Thank you for your question. If the property is let in the period of administration it is classed as income of the estate and the executor is responsible for reporting the rents and paying any tax due. The amount of tax due will depend on profits reported and they will be taxed at either 20%, 40% or 45% depending on how much they are .  Thank you .

thank you for your swift reply, much appreciated. To clarify, does this mean the tax liability is borne personally by the Executor and taxed at the Executor's personal income tax rate? Can it be charged back to the Estate as the liability is only occurred to benefit the Estate and the beneficiaries? thanks

Hi Amanda Fisackerly,
Thank you for your further question.
I would advise you that the rental income received by the estate since the date of death and up until the administration of the estate has been finalised will be taxable at a flat rate of 20%.
No Personal Allowances are available to offset against the income.  
Thank you. 

Thank you this is very helpful