Mark Bennett

Dear HMRC, My father passed away in Jan 2020. In July 2023 I received £9,780 as part inheritance of my Dad’s estate and this sum came from a Trust Fund based on Isle of Man. The trust fund issued a Chargeable Event certificate direct to you (HMRC) which states that I ‘May’ be liable to income tax on this sum. But there was no Inheritance tax applied to my father’s estate as it did not cross the minimum value threshold. I am self-employed and I am declaring a gross income of £28,656 for last financial year which does NOT include the above sum from the Trust fund. But my understanding is that IF it is just capital redistribution then no tax is applicable unless it exceeds the threshold. So why is a certificate issued stating income tax ‘may’ be appliable? Is it special rule for sums from Trust funds perhaps? Your guidance would be appreciated.