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How much savings are you allowed for tax credits?

Is there a maximum amount your allowed to have in the bank before your tax credits are stopped.

We are inheriting some money in the next few months from my late father in law and am wondering how it will affect my tax credits.

What if we inherit it then spend it more or less straight away, do we still need to tell them? Thanks

Comments

  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The amount of savings doesn't matter, its the interest gained that matters.

    Tax Credits allow you to earn £300 per year of miscellaneous income (see the website for more details) before it is counted. This £300 includes interest from savings, so unless you have other income that counts towards the £300, then you can earn £300 in interest p/a before you need to decalre the excess above the £300 as income.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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