small inheritances and tax credit rules

nicola723

hi there
new to the forum
just wanted some advice please , hope you can help

my dad has died leaving me possibly with about 15k and no property

i currently get child tax credits and working tax credits , if i needed to use this inheritance to clear debts does it still need to be advised to tax credits ?

if i saved say 10k what are the implications? obviously if it were a larger amount i wouldnt need the tax credits any more but my worry would be i would have the funds for just a short time and if i paid debts off it would be great but could i miss out on thebenefits ?

thanks all

zzzLazyDaisy

Tax credits do not take into account the savings, but they do take into account taxable interest from savings. This means that any savings in ISA's, premium bonds, or tax free NS&I savings are not counted.

http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/other-income.htm

Hope this helps