Why Might HMRC Enquire Into a Deceased Person’s Tax Affairs?Written on June 10, 2026 by Kirk Rice LLP
The normal time limit for HMRC to raise an assessment in respect of an estate is four years after the end of the tax year in which any discrepancy arose.
However, in a case involving a loss of tax brought about carelessly or deliberately by the deceased (or another person acting on their behalf before their death) the time limit is extended to six years.
Therefore, in most cases HMRC will request tax returns going back 4 years. For example, if a person died in 2025, HMRC can request tax returns for 2021 and subsequent years.
The general time limit for raising assessments cannot extend beyond four years from the end of the tax year in which the death occurred. Therefore, if someone died in the 2024/2025 year, assessments cannot be raised by HMRC after 5 April 2029.
If assessments are validly made and there is an underpayment of tax due for any year, then interest will be chargeable at the HMRC stipulated rate from the date the tax ought to have been paid to the date it was actually paid.
However, there should be no penalties as HMRC accept that a liability to a penalty accruing before death is incompatible with Article 6 of the European Convention on Human Rights.
This does not apply to any tax returns submitted by personal representatives after death, and they could be liable to penalties for errors made on returns submitted after death.
If you are the personal representative of someone’s estate and you are aware of any incorrect returns, we would recommend that you make a full and complete disclosure.
The disclosure could relate to errors or omissions on tax returns and/or an IHT return. It is advisable to obtain professional advice when you need to make a full disclosure as, any such disclosure would notify HMRC not only of any omissions or errors but also quantify the tax due.
If you would like to find out more about our tax services please visit our Tax Compliance & Disclosures page here. You can get in touch via email at info@kirkrice.co.uk
Please note: answers are given for general guidance only and specific advice should be taken before acting on any of the suggestions made. The FCA does not regulate tax and trust advice.
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