Declaring inheritance

Hi im claiming ESA and just found out that i will be getting inheritance of 30k will this affect my ESA claim if i declare it?

Hi,

Sorry, we can only answer HMRC questions on this forum.

Please contact DWP for advice.

Thank you

Hi, I have recently received an inheritance from my Uncle who sadly passed away. The inheritance payment (£20,415.91) came from a pension that he had never cashed in as he was only 62. Will I need to do a self-assessment/pay tax on this payment? I am told by the executor that the pension had around £200-£500 interest included in this total and after reading various things online I understand tax may need to be paid on the interest part. Please advise the process if this is the case. Regards

Hi Lee
As its an inheritance then no, not on the actual payout. the interest received forms part of your personal savings allowance so you will need to declare that but will only need a tax return if your interest is over £10,000.
Thank you.

Hello, my dad passed away, a few weeks ago, in a foreign country. His will, will soon be actioned. Will I have to declare, to HMRC or any other British authority, any inheritance I am likely to receive? If yes, how long do I have? Thank you

Hi janga2,
please refer to How Inheritance Tax works: thresholds, rules and allowances
Thank you.

Hi, my mum and dad both passed away last year, their wills left the estate to myself and my 2 brothers. There was no inheritance tax to pay as it was below the threshold. My mum was the last to die, but before she died she told me she wanted me to give our 3 children (her grandchildren) some of our inheritance, up to £5000 each, and to tell my 2 brothers to do the same with their children. Are we able to do this or would we be liable to tax as it's above the £3000 gift allowance. Thank you.

Hi morgans4,

No there is no tax to pay on this. It would only then form part of your estate were you to pass away within 7 years.

Thank you.

I'm a British citizen and I've inherited a property abroad from my late mother who was also a British citizen (she was domiciled in the UK). The property value is £250k. She does not have any other assests in the UK as part of her estate. I understand there is no inheritance tax to pay, as this is below the threshold. Could you help clarify if I still need to declare this to HMRC? If so - which document would I need to complete?

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

Hi, My father passed away 3 years ago and left a property outside UK with rental income and the inheritance is still waiting the executor to execute the probate. I will inherit this property after the execution. Do I need to declare such income for tax at this moment (but the property is not under my name right now)? or I only need to declare such income after I inherited the property, if so, do I need to declare those rental income arising from that property between the date of my father dead and the completion date of inheritance?

Hi,

The income will be part of the estate at present. Once it is finalised and transferred to you, you will declare this as foreign rental income in a tax return. As it is not a UK asset, it is not considered for Inheritance Tax in the UK but you may want to check the laws of the country it is in.

Thank you.

Hi, My mother inherited money (less than £30,000) from her brother who lived in Hong Kong and never came to the UK. Does my mother need to declare it? Thank you.

Hi, I am the executor of my aunt's estate. I've paid income tax from the estate on savings and dividend income which accrued on savings interest and dividend income. I have prepared R185 for each of the beneficiaries, myself included, but see that you can't submit the details of that estate income on our own tax returns using the online service. Do we all have to submit paper returns to tell HMRC about the estate income - even if there is no extra tax to pay for basic rate taxpayers?

Hi Eliza James

Yes that is correct.

Hi Carey Wong,
No, as it is a foreign inheritance and not liable to tax.
Thank you. 

My partner inherited life insurance money from his mother when she passed away. This money was from Thailand as she was not a British Citizen and was here on a visa. Now, my partner needs to send some of this money to his father, who is retired and has another child who is under 18. Will money that my partner sends to his father this be taxed? Is there a way of sending his father the money and emptying the account without being taxed? How can he gift the money to his father, or is there a different way to do it?

Hi Livcoldwell,
Your partner will not be taxed on the inheritance as it is not a UK asset.
No UK tax is due when he transfers it back to his father but they would need to check the laws of Thailand.
HMRC cannot advise you on how to transfer as this is financial advise which we are not authorised to give.
Thank you. 

Hello I am looking to ask if I will have to pay Inheritance Tax , the estate is about £500,000 and about £100,000 in cash from my granddad, also if i am married do i get a increased nil amount ? or pay less tax or how dose that work

Hi,

If your grand-father's estate included his home, which he is giving away to his children (including adopted, foster or stepchildren) or grandchildren, then his Inheritance Tax threshold can be increased to £500,000.  

Please have a look at:

How Inheritance Tax works: thresholds, rules and allowances

Thank you.