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Inheritance on Tax Return

5 replies

MrsElm · 26/01/2023 10:10

After my mother passed away 18 months ago, I received some funds from her estate. She left no will, and the total amount was well below inheritance tax threshold.

I am now doing my self assessment tax return. Do I need to include these payments?

OP posts:
User76765 · 26/01/2023 10:12

Inheritance is not income

TeenDivided · 26/01/2023 10:14

No.

But I think if there was interest earned on the inheritance between death and your receiving it, that might have to be included. Not sure.

MrsElm · 26/01/2023 10:16

@TeenDivided @User76765 Thank you both, that is very helpful! The will not have been any interest!

OP posts:
Penguinsista · 26/01/2023 10:17

No it's taxed if need be before you inherit it

TimeforaGandT · 26/01/2023 10:21

There’s a box you have to tick if you’re a residual beneficiary of an estate. It’s so they can collect any additional tax due on estate income. The estate will only be taxed at the basic rate on interest and dividends. If the residual beneficiary is a higher rate tax payer then they will be liable to pay the difference between the estate rate and their higher rate.

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