will inheritance affect my working tax credit?

savvy2707

Hi I am about to come into an inheritance through the sale of my parents house. I currently recieve working tax and child tax credit, i am really concerned that my inheritance will affect the amount i get and i will end up living off my inheritance,

Could someone please tell me if this is what will happen?

If it will affect my income is there anyway round it? Could i put the money into accounts for my children? untill i pay it off my mortgage? Or would that still affect it,

alwaysonthego_2

You have to declare any interest over £300 per year.

To move your money into your child's account would be classed as deprivation of capital (fraud).

SomeBozo

A few inheritance questions around.

Can I ask why you think the government should pay you money when you have lots in the bank?

Trying to hide it in childrens accounts don't work as well.

(Anyone remember that lady poster who threw a right wobbler when the DWP asked about her kids accounts? This is why!)

Bozo

savvy2707

Thanks for that do i only have to declare the intere.st and not the inheritance amount

alwaysonthego_2

savvy2707 wrote: »

Thanks for that do i only have to declare the intere.st and not the inheritance amount

You sure do!

tuggy

i would just phone them and ask, they probably get the question all the time.

macman

Inheritances are free of tax. But any subsequent interest from investing them is taxable.

zzzLazyDaisy

You only have to declare taxable interest from your savings.

So you can put some of the money into an ISA, NS&I tax free savings, even premium bonds and those savings will not count for tax credit purposes.

(note this is what I was told by the inland revenue help-line last year, so you might want to phone and double check that this is still correct)

NASA_2

alwaysonthego wrote: »

You have to declare any interest over £300 per year.

To move your money into your child's account would be classed as deprivation of capital (fraud).

My understanding is that deprivation of capital is not fraud - as there has been a declaration of the fact that savings were held and disposed of - hiding the fact that it ever existed is fraud.

thorsoak

savvy2707 wrote: »

Hi I am about to come into an inheritance through the sale of my parents house. I currently recieve working tax and child tax credit, i am really concerned that my inheritance will affect the amount i get and i will end up living off my inheritance,

Could someone please tell me if this is what will happen?

If it will affect my income is there anyway round it? Could i put the money into accounts for my children? Or would that still affect it,

So, your circumstances are changing, you are going to have a substantial amount of capital, yet you still wish to claim benefits so that your substantial amount of inheritance will remain substantial - is this what you want to happen?

You have more money coming in (from the interest on this inheritance) just as you would if you had an increase in earnings - so why should you still receive the same amount of tax credits?

septemberblues

Come on you lot - this is obviously a troll :eek: