Tax on £7k inheritance?

2tontess

My husband has some inheritance of £7k on it's way. Father in law has sent a cheque in the post as he doesn't trust internet banking :eek:

We have a joint account, he earns £37k a year and I am a stay at home mum. We don't have any other accounts other than a credit card. We intend to use the money to pay off our credit card debt so it won't be sitting in the account long. Once the debt is paid off we will however be able to squirrel away a considerable amount in savings each month.

My question is, what will the bank say when we turn up with a £7k cheque? Will we pay tax on it and how will it affect my husband tax wise as I think it will take him through the higher earnings bracket?

We currently bank with Santander ( I know ) But once the credit card is paid off we will have a completely clean slate with a high disposable income and I fully intend to overhaul the management of our finances so any advice will be greatly appreciated :j

hcb42

just pay it in, you wont pay tax

My sister just transferred my inheritance into my account, that was the end of it.

p00hsticks

2tontess wrote: »

My question is, what will the bank say when we turn up with a £7k cheque? Will we pay tax on it and how will it affect my husband tax wise as I think it will take him through the higher earnings bracket?

For an amount that size, the bank may ask where it's come from, just to satisfy their obligations under the money laundering legistlation - just tell them it's an inheritance.

It doesn't count as income, so there's no tax due - any inheritance tax will have been paid out of the estate by the executor(s) (presumably your father-in-law) before the beneficiaries get paid out.