Declaring inheritance

A legatee has received their legacy plus statutory interest. Do they need to declare the interest on their income tax return?

Hi samanthaT,
If this is actually part of the legacy then no.
Thank you. 

Is inheritance tax payable on debt repayments made to an estate? My mother has loaned a substantial amount of money to relative (over £500k) who is repaying it in installments (they have a contract for this). I am the sole beneficiary of my mother's estate so when she passes away I will own that debt and the repayments will continue being made to me until the capital is paid off. Would I have to pay inheritance tax or income tax on these repayments?

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

Hi, I am in the process of inheriting thirds of my late mothers estate which includes a UK property. When Probate was applied for the value of the estate was under the inheritance tax threshold. The house is being sold and the value remains under the threshold so we won't be paying any inheritance tax. My question is - I am self employed, do I need to declare or mention the income from the sale of the property or from the estate in my annual self assessment or any where else? Many thanks.

Hi, My mother in law has terminal cancer as a result of mesothelioma. Will any compensation she receives be subject to inheritance tax? The investigation shows that the likely cause is due to talc and other makeup products she was exposed to in the United States so compensation would be paid in Florida and the prognosis of completing the case before she dies is very slim. She is a UK citizen and long retired.

My ex husband died recently and his parents as next of kin are administering his estate. Because he didn’t have much money they are not required to apply for probate. They do, however, wish to make a gift to me from his estate. Are there any tax implications for them or me if they do this, and is there a restriction on the amount they can give me? We are all in the UK and I am a tax payer.

Hi jaykay,
If the property sells for more than probate value then yes, you need to report and pay this within 60 days
Please see guidance here:
Report and pay your Capital Gains Tax
Thank you. 

Hi Tracey,
Please see the rules on giving gifts:
How Inheritance Tax works: thresholds, rules and allowances
Thank you.

Hi Neil Mahoney,
You can see the guidance here:
IHTM10260 - Compensation Payments
For a more detailed enquiry you would need to contact our Inheritance Tax team or seek professional advice, from the likes of an accountant or specialist in this area.
Inheritance Tax: general enquiries
Thank you.

My husband passed away overseas, he was never been in UK, he has no estate, however I did received around GBP80K claimed from his non UK life insurance, do I required to declare and submit a self assessment?

Hello, My late wife had a court case outside the UK and has received a settlement after she passed of over £750K . Is IHT due on this, and does it need to be declared? I used the IHT tool and it states that I do not need to pay any inheritance tax? Thanks.

Hi,

You will need to contact the inheritance tax helpline on:

Inheritance Tax: general enquiries

for advice on this matter.

Thank you.

Hi Sab C,
Please refer to HS321 Gains on foreign life insurance policies (2024)
Thank you.

Hi, I just found this forum. We're awaiting probate to clear. My mother passed away in January 2024. Last year, she gave each 3 of us £10,000. At the time, mum had been living with us since lovkdown due to health. we bought a new bed, bed recliner, and other aids to help her. She bought us a new sofa and lawnmower. Any other money went into bills and food. Anyway, due to the £10,000 being over the gift allowance, what will or could happen? They will keep the money and pay the tax from what it should have been. The amount is around £140,000.

Hi Dellboy,
Please contact the Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you.

Hi My father passed away recently. He was a joint tenant with my mother in their home and his estate at death was below the IHT threshold. He made gifts of £500k within 7 years of his death Questions: - although the estate was below IHT threshold at time of death, still need to complete an IHT 400; correct? - as for the gifts, how to pay tax on this amount? The beneficiaries pay via declaration on their tax returns? - my mother would need to apply for the Residence Nil rate band? Thanks

Hi,
Please contact the Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you.

Dear Sir, my father passed away a few months ago, and I inherited a sum of money but no property, well below the £325,000 threshold. I am Italian, but I live and work in the UK with indefinite leave to remain. Is there anything I need to do, and if so, how do I declare the inheritance?

Hi,
Inheritance tax is only due on UK assets. Therefore inheritance that you receive from anywhere that is not the UK is not taxable and does not need to be declared. However, You will need to declare any income that is then generated from these assets.
Thank you