Is inheritance income?

whatema

Our family income is normally around 20,000. Last year my husband inherited just over 50,000 from his father which went straight into a savings account. I'm now filling in my sons EMA application and it wants last years income. Does the inheritance count as income for that year?

healy

whatema wrote: »

Our family income is normally around 20,000. Last year my husband inherited just over 50,000 from his father which went straight into a savings account. I'm now filling in my sons EMA application and it wants last years income. Does the inheritance count as income for that year?

It would not be classed as income but would be classed as capital.

whatema

Does that even apply to the year in which it is recieved? Sorry to sound thick but it worries me.

healy

whatema wrote: »

Does that even apply to the year in which it is recieved? Sorry to sound thick but it worries me.

It is not earned income, it is Capital.

sunnyone

ISAs are ignored from tax credit calculations because they are tax free, your limit for this year is £5100 each (I think its went up in April) so you can put £10200 in cash ISAs if you use up this years allowance or more in a stocks and shares ISAs but these ones are subject to risk (cash ISAs arnt) so if you decide to invest more in these ISAs you would need to find an independant finacial advisor.

You can put more money away every year, ISAs in general offer a better intreat rate than savings accounts and you can have instant access to your money, there is a part of these boards for advice on ISAs and it may be worth you having a look there for advice before you commit yourself to anything.

Sorry I have answered the wrong thread, I dont know how lol.