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    • BristolBruce
    • By BristolBruce 30th Nov 17, 8:10 AM
    • 1Posts
    • 0Thanks
    BristolBruce
    Tax on bequests from a Will
    • #1
    • 30th Nov 17, 8:10 AM
    Tax on bequests from a Will 30th Nov 17 at 8:10 AM
    Hi. I am in the very fortunate (well, financial at least) position of getting a bequest from a relative's will of around £60,000.

    My relative's estate is likely to be below the nil-rate IHT band of £325,000 so no IHT will be paid on my relative's estate.

    However, does anyone know if I will be liable for any tax at all on the £60,000 I will inherit? And if so, what specific type of tax will I be liable for? I currently pay income tax at the 20% rate.

    Any advice will be much appreciated as this is worrying me a lot. Thanks in advance for any help.
Page 1
    • comeandgo
    • By comeandgo 30th Nov 17, 8:21 AM
    • 1,878 Posts
    • 2,517 Thanks
    comeandgo
    • #2
    • 30th Nov 17, 8:21 AM
    • #2
    • 30th Nov 17, 8:21 AM
    You don’t pay tax on gifts or inheritance in this country.
    • le loup
    • By le loup 30th Nov 17, 8:49 AM
    • 3,664 Posts
    • 3,594 Thanks
    le loup
    • #3
    • 30th Nov 17, 8:49 AM
    • #3
    • 30th Nov 17, 8:49 AM
    Any advice will be much appreciated as this is worrying me a lot. Thanks in advance for any help.
    Originally posted by BristolBruce
    As has been said, no tax for you but, why would you worry a lot about this. Even if you did have to pay tax, you would still be better off.
    • xylophone
    • By xylophone 30th Nov 17, 10:56 AM
    • 23,666 Posts
    • 13,793 Thanks
    xylophone
    • #4
    • 30th Nov 17, 10:56 AM
    • #4
    • 30th Nov 17, 10:56 AM
    Even if you did have to pay tax, you would still be better off.
    I don't think the OP is disputing this.

    He just wants to be sure of any obligations he may have so that he doesn't find himself with unexpected bills.

    Any tax due on an estate should be paid by the executors before releasing bequests.

    Once the OP receives the cash, below might be worth a look.

    https://moneyfacts.co.uk/guides/savings/how-are-my-savings-taxed/
    • badmemory
    • By badmemory 30th Nov 17, 6:48 PM
    • 1,062 Posts
    • 1,127 Thanks
    badmemory
    • #5
    • 30th Nov 17, 6:48 PM
    • #5
    • 30th Nov 17, 6:48 PM
    the short version is - only tax on the interest & that only if it is (if your tax is paid at 20%) over £1000. This is the short version, other things may change this.
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