Skip to main content

This is a new service – your feedback will help us to improve it.

  • RE: Tax liability on Child's inheritance

    There is nothing there to explain how they know it's not my money. I don't complete a self assessment, and the money is in a separate account for my child with me as a trustee. This really doesn't help and it's quite worrying that my tax code is likely going to be changed because I can't get this information anywhere. I can't afford that and it doesn't seem fair to take money from my child to cover any tax deducted solely because no one seems to be able to give me an answer.
  • RE: Tax liability on Child's inheritance

    I'm not sure that really answers my question. Perhaps I'll try to rephrase it. Children can earn interest of up to £100 on savings from parents (I think?) this is not from a parent, it's from a grandparent. It will also attract significantly more than that in interest. So how does HMRC know it's not my money? Am I going to be hit with a tax bill I can't afford because my child is earning interest? It's in an account with me as a trustee, but it's never actually come from me, and I can't afford for my income to be slashed because of savings that I haven't ever accrued. Thank you.
  • Tax liability on Child's inheritance

    My child inherited a reasonable sum of money from my parent, it came in via my bank account from a solicitor. It will attract a reasonable amount of interest this year. It's not my money, and I can't afford for my tax code to be altered as my earnings are limited anyway. What do I need to do to "prove" the money hasn't come from me and therefore avoid being taxed on it? I only have a letter from the solicitor, and I don't complete a self assessment, so if all this is done automatically, will they deduct tax from my income?