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Joshua
Joshua, Lawyer
Category: Family Law
Satisfied Customers: 26070
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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My 21 year old son inherits £70,000 on 27 Oct. As a student

Customer Question

My 21 year old son inherits £70,000 on 27 Oct. As a student does he have to pay tax on this?
Submitted: 3 years ago.
Category: Family Law
Expert:  Clare replied 3 years ago.
Hi
Thank you for your question.
My name is Clare
I will do my best to help you but I need some further information first.
Who is he inheriting the money from?
Clare
Customer: replied 3 years ago.

Hi from his dad's mum. His dad died 3 years ago so when she died 2012 instead of it going to his dad it went to him. Since his dad died May 2011 we have been on an income of £10,000 - 13,000 per year dependng on what I can earn per year, so he is entitiled as a student to non pay back full maintaince grant as well as full student grant and loan?

Customer: replied 3 years ago.
Relist: Other.
sat here after signing up for near an hour without an answer. it was was a simple question!!!!!!!
Expert:  Joshua replied 3 years ago.
Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Hello I am sorry you have been waiting for some time. We are working solicitors so unfortunately we are sometimes called away. I will try to assist in my colleagues absence.

Your son should not have to pay any tax. His grandmothers estate may have been subject to inheritance tax if it was worth more than £325,000 but this would be the responsibility of the executors to pay normally and it is likely that any such tax would have already been settled if it were applicable at all.

There is no gift tax in the UK so your son would inherit the money after the above without further tax liability. The only tax that would be applicable would be income tax on any future interest he subsequenly earns on the money though this would typically be collected by the bank at source.

Is there anything above I can clarify for you.
Expert:  Clare replied 3 years ago.
Hi
My apologies for the delay - I was away from the computer.
My colleague has given you the correct answer
Clare
Expert:  Joshua replied 3 years ago.
Does the above answer all your questions or is there anything I can clarify or help with any further?