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Declaring a Legacy

fossil
fossil Posts: 33 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 4 July 2010 at 4:46PM in Benefits & tax credits
I am currently filling in my tax credit forms (child and working tax) and I'm not sure if I need to declare a £2000 legacy I received last October. I didn't include in the tax return I just filed, as it looks as if the couple who left it to me would already have been taxed with inheritance tax.

But on the tax credits form it says I should declare "income from trusts, settlements and estates", although it also states that I should have received a R185 certificate with the letter and cheque from the solicitor. It says I should enter the gross amount, but I didn't think I should be taxed on it...???

I'm confused. If I do enter it for tax credit assessments, am I right in thinking I can deduct £300 which is an allowable amount?

Many thanks for any light anyone can throw on this.

Fossil

Comments

  • gizmo111
    gizmo111 Posts: 2,672 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    They are asking you to declare any income from the £2000 - you have to declare interest over £300.
    Mama read so much about the dangers of drinking alcohol and eating chocolate that she immediately gave up reading.
  • fossil
    fossil Posts: 33 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Ahh, so it's interest. OK thanks.
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