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Working tax credits and pension inheritance

2 replies

becky140290 · 28/03/2022 17:25

Hi,
My dad passed away last year and I've been told that I will be receiving his pension pot in monthly payments for the next 4 years, and its tax free.

So my question is as I receive working tax credits, will I need to let HMRC ? Is it seen as an form of income.

Thank you.

OP posts:
nannynick · 28/03/2022 17:49

Did you dad die before he reached age 75? From what you are saying about the pension being tax free, I am guessing he died before age 75.

www.gov.uk/changes-affect-tax-credits

I would report the change in circumstances and that it is a monthly payment coming to you, from an inherited pension, which is non-taxable.

This may affect your eligibility for tax credits, may change your award amount, or may have no affect if it is a small amount involved.

wobbleinprogress · 28/03/2022 17:49

Yes it is normally income and you have to inform them

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