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Tax credits and inheritance

(5 Posts)
Namechengedtoprotecttheinnocen Fri 19-May-17 14:43:00

Tax credits are always a hot topic and I'm absolutely not trying to hide anything, just looking for advice on the probable impact of answering the questions truthfully so I can prepare myself.

I inherited some money last year and have since used it to buy my exH out of the house. There is less than £6000 left of the cash. While filling in the tax credit renewal I'm being asked for the total amount that I inherited. Most of the money is now either with my ex or invested in the house - do I get a chance to tell them this or will they assume I still have the whole amount?

Namechengedtoprotecttheinnocen Fri 19-May-17 16:28:35

Ah, finally got to the bottom of it all! You only have to declare an inheritance if there was a form R185 issued. This is the form to declare the tax on any interest accrued from the estate while it was waiting to be executed.

bimbobaggins Fri 19-May-17 19:25:11

How did you get to the bottom of it ? I've recently had an inheritance and I've written to tc wishing to stop my claim but haven't heard back

Namechengedtoprotecttheinnocen Sun 21-May-17 13:06:27

I phoned tc and asked. They said only declare if there's a form R185 which shows the interest from the inheritance before it came to you. I checked with the solicitor and there wasn't. I have to declare it as savings rather than as the inheritance which as it passed through my savings account so quickly I didn't earn any interest on it.

So I declare what's left as savings and see what happens this year.

bimbobaggins Wed 24-May-17 19:39:12

Thanks namechanged I have received a letter from them today asking me to phone. I'm a bit worried about this because I don't want any stress in dealing with them. I'm trying to do the right thing

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