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Posted Thu, 04 May 2023 15:29:28 GMT by STANLEGAL
I have received a refund of inheritance tax on a deceased person's estate. Interest has also been paid. Is the interest subject to income tax?
Posted Wed, 10 May 2023 14:32:37 GMT by HMRC Admin 25
You do not mention how the interest arises.
If the interest is from the estate itself, then this is subject to Income Tax.  
If the interest is charged by HMRC for late payment or late filing, then this is not subject to Income Tax.
Thank you. 
Posted Thu, 17 Aug 2023 12:10:49 GMT by Jenna Fyfe
Can you clarify this response please? Please confirm if the interest received on an IHT repayment is taxable for the Estate.
Posted Fri, 18 Aug 2023 14:26:27 GMT by HMRC Admin 25
Hi Jenna Fyfe,
No as this is not income generated from an asset.
Thank you. 

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