12.4.1 Introduction

The income tax position of beneficiaries of a will is by no means a straightforward matter.

During the administration period, the beneficiaries have no interest in either the deceased’s property or any income (or gains) arising from such property. Accordingly, during this period it is the PRs who are exposed to income tax (or CGT) on any such income (or gains). The PRs’ liability to income tax is thus, in a sense, a liability on their part as representatives of the beneficiaries under the will.

The income tax position of the beneficiary depends upon whether the beneficiary is entitled to:

a specific legacy;

a pecuniary or general legacy; or

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