Inheritance tax on rented residential property

[Mocame]

I have a query about the tax due when a rented dwelling is inherited. I understand that capital acquisitions tax is due on the relevant portion of the capital value of the dwelling that is above the exemptions allowed for inheritance. However what about the rent paid during the year or so between the deceased person's death and the transfer of the asset to the beneficiary? Should income tax be paid on this income or CAT?

 

[jpd]

Any income or gain from assets in the estate has to be accounted for and any tax on this income/gain paid by the executor of the estate prior to final distribution of the assets

 

[Mocame]

So the beneficiary won't be liable for tax on the rent the dwelling has generated when the distribution of the assets in the will will was being organised? This tax will be paid prior to the distribution of the assets and the beneficiary will not be liable for tax on any rental income they receive for this period?

 

[DannyBoyD]

The usual course of action is that rent is paid into the estate, not to beneficiary.

The estate the finalises accounts including any tax due.

Once beneficiary receives their inheritance, compliance is their responsibility.