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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 8119
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I'm a year old pensioner, I draw state pension and 2 small

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I'm a year old pensioner, I draw state pension and 2 small company pension, because the total of these is below what the government say I need to live on I get pensioner tax credit (or whatever it's called now!). This is a small amount paid into my account I also get my rent paid and council tax, I live in social housing. I'm allowed to have a maximum £10.000 in savings and 'working cash, I have below that.
JA: Which tax year is the tax credit for?
Customer: I'm a 78 year old pensioner , I draw state pension also 2 small company pension, because the total of these is below what the government says I need to live on I get pensioners tax credit. I get a small amount paid into my bank but I also get my rent/council paid I can only have £10.000 in savings and working capital, so far so good. I have just received an unexpected inheritance of £12.000 which I want to pass on to my grandchildren without me loosing my tax credit..What do you suggest.
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: Don't think so..

Hello and welcome to JustAnswer. I’mCustomer a UK qualified accountant. Reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

You can pass your inheritance to your granchildren and this would affect your pension tax credit.

You can make a deed of variation and pass the legacy to your grandchildren provided changes to the will are completed within 2 years of the death.

More on this here

https://www.gov.uk/alter-a-will-after-a-death

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 10 days ago.
If I deposit the money in my account one day and move it to my grandchildren's accounts the next will I still lose my tax credit?

Thank you for your reply.

Gifting legacy a day after depositing into your bank account should not affect your tax credit.

I hope this is helpful and answers your question.

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 10 days ago.
Thank you

Hi there

Just checking to see if you need me to clarify anything or if you have any additional questions - I am happy to help!

Many thanks

Customer: replied 10 days ago.
Advice was clear and informative...Thank you

I thank you for accepting my answer and for your kind words.

I'm glad I could help you resolve this today. Please follow up here if you have any other questions.

Best wishes.