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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15917
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Hello, Ive just received £32,000 from my dads estate as he

Resolved Question:

Hello, I've just received £32,000 from my dads estate as he passed away at Christmas. I know that there is not enough to pay inheritance tax but do I need to declare it and pay tax as unearned income? I have a state pension and do part time work so already pay 20% tax. Thank you.
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.
Recipients of legacies don't pay tax on them and you don't need to report the one you received to the tax office. If any interest was paid to you as well as the capital sum, that should have had basic rate tax deducted from it as that is taxable income.
It would be as well to retain any paperwork you have which proves the provenance of the cash you have received in the unlikely event you are asked about it.
Any Inheritance Tax due should have been paid by your father's executor before the distribution of the estate cash and assets.
I hope this helps but let me know if you have any further questions.
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