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Many years ago a deceased client sold a property a portion of which was funded by way of a deferred debt to be repaid on disposal as a proportion of the sale proceeds.
Subsequently two further loans were made on which interest has been paid on a monthly basis. One of the loans was at a fixed rate for five years after which it should have been reduced to 0.75% above the Bank of England base rate. However interest continued to be received at the higher rate.
Consequently at the date of death in March 2019 the loan interest had been overpaid by £8 500. The correct amount of interest has been received on the other loan.
It is proposed to complete the 2018-19 return without including any loan interest received (in the region of £2 500 for the two loans). Presumably it is also in order to amend the tax...
