Is interest paid by HMRC taxable?

[hiriskpaul]

I overpaid inheritance tax a couple of years ago to avoid interest on underpayment. I received a refund last tax year with interest. Is this interest taxable? ie do I need to include it in the estate tax return?

[Charlottesquare]

I overpaid inheritance tax a couple of years ago to avoid interest on underpayment. I received a refund last tax year with interest. Is this interest taxable? ie do I need to include it in the estate tax return?

I suspect not- interest paid by HMRC to individuals is not taxable income and I would expect this to apply to interest paid to the executors of an estate. (To be clear interest paid by HMRC to a Ltd Company is taxable)

[hiriskpaul]

I overpaid inheritance tax a couple of years ago to avoid interest on underpayment. I received a refund last tax year with interest. Is this interest taxable? ie do I need to include it in the estate tax return?

I suspect not- interest paid by HMRC to individuals is not taxable income and I would expect this to apply to interest paid to the executors of an estate. (To be clear interest paid by HMRC to a Ltd Company is taxable)

Thanks, that is where I got to. Fairly clear for individuals and companies, but I have found nothing for estates or trusts. I guess I am going to have to ask HMRC!

[scrumpyjack]

I overpaid inheritance tax a couple of years ago to avoid interest on underpayment. I received a refund last tax year with interest. Is this interest taxable? ie do I need to include it in the estate tax return?

I suspect not- interest paid by HMRC to individuals is not taxable income and I would expect this to apply to interest paid to the executors of an estate. (To be clear interest paid by HMRC to a Ltd Company is taxable)

Thanks, that is where I got to. Fairly clear for individuals and companies, but I have found nothing for estates or trusts. I guess I am going to have to ask HMRC!

I don't believe it is taxable for Executors and have treated it as non taxable in returns. There is nothing on HMRC's website to indicate it is taxable, except where corporation tax applies. The income of an estate becomes the income of the residuary beneficiaries and, assuming they are individuals, repayment supplements would not be taxable. Anyway that is the thinking on which I have based my view that it is not taxable. The amounts in my case have not been material anyway.