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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Back in February 2012 my wife Jean received the sum of

Customer Question

Back in February 2012 my wife Jean received the sum of £7,803 which was the proceeds from a sale of some land after the death of her Father, she was told at the time by the solicitors that she may in future be liable for Capitol Gains tax, as she has never
received a tax form it has never been declared, she is now worried about this, I assumed that the payment was too low to declare. She was and still is retired. Can you please give her some guidance? Regards, ***** *****
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. Can you tell me if there were other recipients of cash from the land disposal please. Was the land sold by the executor of her Father's estate and never put into the names of the people who inherited it?
Customer: replied 2 years ago.
Hi Tony,
Apart from my wife her stepmother received cash from the sale of land, also payments were made to settle costs of care in a home, the land was sold by the executor and never put into any other persons name, my wife and her Stepmother received what was left over after all bills and costs had been paid.
Expert:  TonyTax replied 2 years ago.
Thanks.
Based on what you have told me, your wife will never have to pay tax on the money she inherited. The property was sold from within the estate of your wife's late Father so had there been any CGT to pay it would have been payable by the deceased estate.
I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Thank you....out of curiosity is there a maximum amount that can be inherited before any tax is due?
Expert:  TonyTax replied 2 years ago.
Not in the UK. Inheritance Tax should be renamed Estate Tax because the name IHT gives the impression that the tax is paid by the inheritor whcih can be the case in come circumstances but as I said in my answer, the executors usually pay off any debts and any taxes including IHT before distributing what's left to the inheritors.