Tax question - help please

bettieB

My Gran died about 20 years ago leaving a small inheritance to my mum. There was no inheritance tax liability.
An IFA suggested and arranged for Gran’s money to be invested offshore in the Isle of Man. Mum has recently got the money back from the IOM with a small profit. We have been told that Mum has to pay 20% of the total in tax.

I wonder if someone could advise please? I would have expected to pay tax on the interest (as you would in a building society) but surely not on the full amount.

Mum is a non-taxpayer. Her pensions take her just under the tax threshold.

This is my first post on MSE so hope I have explained myself clearly and posted in the correct forum.


Regards
BettieB

CLAPTON

who told you?

what sort of investment or was it a savings account?

bettieB

An independent financial advisor (has a good reputation in this area) arranged everything for mum. I think it was a portfolio of Skandia??? managed bonds on the Isle of Man. She had annual statements and it did extremely well, made loads of profit, until this last year when it dropped considerably.

I can't remember if he said that the Inland Revenue would contact us or whether we had to declare to them. He told us a figure payable which was 20% of the full amount. Didn't make sense to me so thought I would try and get some info on MSE before I go to Inland Rev. (Mum is elderly so I will have to do everything for her).