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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10623
Experience:  Barrister 17 years experience
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I inherited just over £57,000 during January14. I have paid

Resolved Question:

I inherited just over £57,000 during January14. I have paid off over £18,000 of debt and my intention is to invest the balance to ultimately pass on to my two daughters. I am currently receiving pension credit and I will reach retirement age (65) in just over a year. The inheritance was from my mother who was a tax payer and the tax man signed everything off during probate. So, in effect my mother had been paying tax on her income - my father's superannuated pension. She had no other income. It seems unfair to tax net monies again if this is the case. What is my position?
George
Submitted: 3 years ago.
Category: Law
Expert:  Buachaill replied 3 years ago.

Buachaill :

1. There is no tax on the monies in your hands. Inheritance tax is payable by the estate of your late mother. Any monies you receive as a beneficiary will already have had tax removed if any was payable. So there is no second taxing of the monies in your hands. So the £57,000 you received already has had any tax paid on it and is not of tax. So you don't have to pay any tax on the monies.

Buachaill :

2. Effectively, the revenue ensure that all inheritance tax is paid before it ever reaches a beneficiary's hands. That is why Inheritance tax is payable by the estate and not by the beneficiary.

Customer:

I feel obliged to inform my local council who have been helping me with part of my rent - should I do so

Customer:

I meant to add on to my question that I feel obliged to inform my local authority of monies I have inherited as they have been helping me with my rent. What should I do as the loss of this would smack of a penalty on my mother's already taxed legacy to me.

Buachaill :

3. It is up to you as to what you want to do. It is only if the rent assistance is means tested that you have to declare it to the council. so check the terms of the rent assistance

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