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Posted Thu, 28 Dec 2023 15:26:04 GMT by
My mum died in October 2022 and I was issued a chargeable event certificate which puts the chargeable tax at around £9600. There are 2 beneficiaries to the will making this roughly £4800 ‘taxable’ income. I currently pay no income tax as I receive carers allowance and have no employment. My query is what, if any, tax needs paying on this and if it is nil, does a tax return still need completing? Thanks.
Posted Tue, 09 Jan 2024 11:51:24 GMT by HMRC Admin 5 Response
Hi

Please have a look at helpsheet HS320 (HS320 Gains on UK life insurance policies (2023))
for advice that personal representatives/executors need to take, as well as beneficial owners of the rights under the policy. 
The estate or the beneficiaries may need to submit a tax return to declare the gain if the gain was over £10000.00.

Thank you
Posted Tue, 09 Jan 2024 14:05:48 GMT by
Hi, sorry no you have misunderstood. The estate had no tax to pay (after reading the guidance you stated) and is now finalised and distributed. My question relates to whether I have to pay tax on the above as a beneficiary as I do not work and whether I need to complete a tax return even if there is no tax to pay.
Posted Tue, 16 Jan 2024 08:31:41 GMT by HMRC Admin 19 Response
Hi,

The chargeable event would normally have notional tax deducted at source. If not, based on the amount received, this would be covered by your personal allowances and there is no need for a tax return.

Thank you.
Posted Tue, 16 Jan 2024 09:42:19 GMT by
Great thanks

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