2007-10-09 18:50:03 · 7 answers · asked by markanthony 2 in Business & Finance ➔ Taxes ➔ United Kingdom
No, the obligation is on the deceased's estate to pay any tax*(and report the inheritance it paid out) so you don't have to worry about inheritance tax, capital gains tax or income tax - all you have to worry about is paying tax on any interest you make from it.
* the estate would have to pay tax on the inheritance if the total paid is greater than 300k
(assuming you're in the UK)
2007-10-09 18:55:46 · answer #1 · answered by Anonymous · 4⤊ 0⤋
no, you dont have to declare the inheritance and you wont have to pay tax on it as the tax is taken before all the money and posessions are distributed (ie, the estate pays the tax if any due) so you dont have to do anything.
there are however circumstances when you need to notify someone, ie if you are in receipt of benefits or tax credits, think the limit is £3000 savings so if the amount is over this, then yes you need to tell the relevant people.
if you complete a tax return each year....read on.....
there are instances when you may want to notify the inland revenue, but this is done on a voluntary basis. If you complete a tax return and the amount of money is a considerable amount (say over £5000), then it may be worth putting a note in the white space on page 10 of the return stating that you received X amount of money from so and so.
this is to avoid any question rasied by the inland revenue, because there maybe reasons why your income have jumped up, ie bank interest received on the money in your bank account may have jumped a few 100% and this would look strange, or maybe you didnt work for 6 months to take some holidays using the inheritance and this would mean your earn income in the year was down.
but this is only done to cover your back so to minimise the risk of investigation as the revenue do look at big chances in income, whether it has gone up or down.
2007-10-09 20:53:00 · answer #2 · answered by Paul S 5 · 0⤊ 0⤋
You can rely on the Solicitor handling the deceased Estate money to sort out any Tax due before paying you.
NB. Just in case - if you have been informed of this 'Inheritance' via an email from some untraceable public email address and have been asked to pay money 'up front' to receive your inheritance, THEN it's a scam (they will take your money and you will never see a penny back) ... sorry ..
2007-10-09 22:23:42 · answer #3 · answered by Steve B 7 · 0⤊ 0⤋
It depends on how much and your circumstances
If you complete a self assessment you may find the form will ask you of such income being received.
If you claim any benefits then you MUST inform the local authority and/or DWP relevant to the benefit to avoid being prosecuted for non disclosure of info
The inheritance may have already been subjected to tax again this depends on how much it is but if it was to be taxed it would have been before it reached you
If you are concerned and want to avoid any comeback...ring your local tax office and ask
2007-10-09 19:00:29 · answer #4 · answered by stormydays 5 · 0⤊ 0⤋
Yes you do have to report it when you file your taxes. Any "gifts" or inheritances have to be accounted.
2007-10-09 18:52:58 · answer #5 · answered by Anonymous · 0⤊ 2⤋
Yes you will need to do both.
2007-10-09 19:09:31 · answer #6 · answered by Anonymous · 0⤊ 1⤋
yes mark s is right
2007-10-09 18:56:12 · answer #7 · answered by dumplingmuffin 7 · 1⤊ 1⤋