TSEM7914 - Deceased persons: Personal representatives' expenses: What expenses are not allowable?

The following items are examples of the type of expenses that are not allowable as personal representatives’ expenses, that is, they are not to be taken into account for income tax purposes and cannot be deducted from the aggregate income of the estate when the personal representatives are calculating the amount of income chargeable on the beneficiary.

• Funeral expenses.
• Costs of collecting and preserving the deceased’s assets.
• Debts of the deceased plus interest due on these to the date of death.
• Any legacies.
• In Scotland, payment of prior or legal rights.
• Probate/confirmation fees.
• Any other testamentary and administration expenses relating to capital.
• Inheritance tax, income tax and capital gains tax.
• Interest on late payment of inheritance tax, capital gains tax or income tax.
• Professional fees or other expenses relating to the preparation and submission of inheritance tax accounts or self assessment (income tax and capital gains tax) returns to the date of death.
• Professional fees or other expenses relating to the preparation and submission of estate capital gains tax returns.
• Professional fees or other expenses relating to the preparation and submission of estate accounts to the extent that they relate to capital.
• Income attached to a specific legacy, for example rents from a let property (but these sums are generally excluded from the calculation of aggregate income).
• Expenses that are taken into account in calculating the personal representatives’ taxable income, for example deductions allowed in computing the profits of a trade or property business.