Tax on an inheritance?

  Simsy 14:51 01 Apr 2009
Locked

Folks,
I'm not seeking financial advice, just, if possible, a simple yes or no...

My wife is about to inherit as a result of the death of her dad. The estate is well below the threshold for inheritance tax.

Is income tax payable on what she is likely to receive?

I'm sure I read somewhere recently that it isn't, but I can't find whatever it was I read, and I'm now being led to believe that income tax will be due.

Any experts out there that can give a simple, (or even a qualified), Yes or No?

Thanks in avance,

regards,

Simsy

  Cymro. 14:58 01 Apr 2009

I would hope very much that it is taxable. It seems as far as your wife is concerned to be unearned income. The way the country is every penny is useful.

  Simsy 15:10 01 Apr 2009

may well be so...

However...

Does anyone have a Yes/No for me?

Regards,

Simsy

  Monoux 15:14 01 Apr 2009

The answer appears to be No click here

  namtas 15:25 01 Apr 2009

Please don't use this as fact but as far as I am aware, any money gifted, won or inherited is classed as unearned income and therefore taxable at source, However I believe it is only the interest that is taxable and not the capital sum. Tax liability depends on a whole load of factors such as personal tax allowances and existing levels of salary or interest from existing finance. It would most likely if of significant size that you would need to seek professional advice to be clear.

  Simsy 15:40 01 Apr 2009

namtas. If what you say about interest is correct that is very useful!

Monoux... Thanks, but that's Inheritance tax.

Inheritance Tax is payable by the deceased's estate, (if the value of the estate is over the threshold). What I was seeking is info regarding money inherited AFTER the inheritance tax, (if any), has been paid.

Thanks,

Regards,

Simsy

  ventanas 15:42 01 Apr 2009

No it is not subject to income tax. You will receive the inheritance in full.

  Simsy 16:02 01 Apr 2009

In fact, since my last post I've found out some more...

From the link Monoux provided I got to;
click here

and then to;
click here
and then to;
click here

At which point I made a phone call, and spoke to someone very quickly, who confirme that income tax is not payable on the money inherited, but it is payable on interest the money has earnt since the death up to the time of distribution.

Thanks all.

Regards,

Simsy

  Kaacee 16:50 01 Apr 2009

The simple answer is NO....

  Diemmess 18:11 01 Apr 2009

Which publishes a book 'Wills and Probate'
click here
A generation ago I obtained probate for my parents and father-in-law, using an earlier edition of this book.

DIY, sticking to the letter of these instructions proved simple, accurate, safe and cheap and quick.

Provided the estate is modest and doesn't include stocks and shares it is really easy.
A computer these days will take the drudgery out of form letters to everyone in sight!

Best of all, and this would have pleased Pa-in Law who had venomous views about solicitors, their delays and their fees. They are not needed.

If there are stocks and shares, an accountant will sort out date-of-death prices for a modest fee.

The Will side of things IMO is not a matter for the amateur, but the Will was made long ago.

  john bunyan 18:22 01 Apr 2009

No. And ,Cymro, tax was probably paid by Simsy,s father in law when he earned it!
It is also quite easy to do probate yourself if the will is simple (done it a few times)

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