Ltd Company

Hello, Our father passed away three years ago. We filed an IHT (no inheritance tax to pay). Our father owned a Ltd company which was wound up by the accountants and a final self assessment and corporation tax bill was paid for our late father. We distributed the estate and paid the cash balance of the Ltd company to ourselves as the beneficiaries (£20k each). We filed a self assessment and paid income tax on the dividends. We have since been told by a friend that this was incorrect as the company was included in Inheritance Tax return. So my question is, should we have paid tax on the dividends payments or not? If not, how do we reclaim this? Thanks

Hi MaltyMany,
From the limited information it would appear that the dividends are not part of the inheritance as you state all cash was distributed.
You would therefore need to declare the dividends received.
Should further advice be required, you should contact us direct on 0300 200 3310 as more information is required.
Thank you.