Do I declare inherited money on tax return?

Laz123

There doesn't seem to be a board on inheritance so I hope this is the right one.

It's that time of year again when tax returns have to be in by Oct end (or next year online). What a pain.

I inherited quite a lot last year and all taxes were paid by the estate. Is it necessary to declare this on my return, and is there any likelyhood it may incure any tax?

TIA

System

Laz123 wrote: »

There doesn't seem to be a board on inheritance so I hope this is the right one.

It's that time of year again when tax returns have to be in by Oct end (or next year online). What a pain.

I inherited quite a lot last year and all taxes were paid by the estate. Is it necessary to declare this on my return, and is there any likelyhood it may incure any tax?

TIA

No you do not declare the capital you inherited but you do declare any interest made if you invested it. Obviously ISA's are not taxable so don't include them.

roger196

Laz123 wrote: »

There doesn't seem to be a board on inheritance so I hope this is the right one.

It's that time of year again when tax returns have to be in by Oct end (or next year online). What a pain.

I inherited quite a lot last year and all taxes were paid by the estate. Is it necessary to declare this on my return, and is there any likelyhood it may incure any tax?

TIA

Not necessary to declare. However worth putting a brief note on the tax return about inheritance as the source of your capital. Otherwise the sudden and unexplained rise in investment income might trigger an investigation, especially if self-employed.

Laz123

Thanks for your replies.

dzug1

You DO need to declare any INCOME received from the estate on your tax return. The executors should have provided you with an IR form detailing it and the tax they paid on your behalf. Unless it took you into a higher tax bracket, there will be nothing more to pay.

You do NOT need to declare the bequest itself - that's capital. Any tax (eg IHT) will have been paid by the estate and is not your concern.