Question on taxable income with regards to Inheritance and Tax Credits

life_of_pie

Hi New to forum.

Today out of interest i phoned the Tax Credit people out of interest i have recently returned to work and having a disabled wife i was interested in the possibility of Tax Credits .

The lady i spoke to seemed very robotic in her mannerism and said i would probably from the figures i had given qualify for £90 PW Aprox . During the conversation i had asked to ask a question as she was in robot mode ,but been told to wait till the end .

The end arrived and i asked my question " Does my wifes inheritance in 2012 of £35,000 affect my ability to claim ?

Oh she said why did not you mention this ? I tried to i said you told me to wait .

She asked me if when my wife received the Inheritance did the letter from solicitor state if it was taxable income ? I said it did not just the usual waffle about income based benefits etc .

She said it would be counted as taxable income . I asked my friend an accountant about it he said the money is classed as savings and is not taxable income . However interest earned in the money might be considered so .

I also asked the solicitor concerned he said that it was probably not taxable income and to take the accountants advice who was best qualified .

A few facts my wife was not sole beneficiary and the total estate was not worth more than £300,000

The estate was dealt with properly by a probate firm

My wife is disabled and does not work i have until recently cared for her and received carers allowance events have allowed me to at last return to work thank god !

However when my wife inherited this money we found we were immediately not entitled to income based benefits like housing benefit income support etc . As a result the money quite rightfully has paid rent and council tax and other bills that is only fair .


Can anyone advise if the money is taxable income most people i have asked have said no only money generated from the money is for eg interest .

The money is not in a savings account so interest has been very small anyway i am guessing possibly £10 since being in receipt of the £35k if its not in a savings account does that make something else ? Does it have to be in a savings account ? Does the £10 need to declared to the HMRC ?


My wife receives the soon to vanish Incapacity benefit contribution based and also DLA high mobility and middle care rate we told the dwp of my wifes inheritance they advised neither were affected just income support carers allowance and housing benefit . They said they werent interested and thanks for informing them . Obviously my income based benefits were stopped . We lived off the money since last May 2012 .

Any advice welcome is this Taxable income ?

princessdon

Only income eg interest over £ 300 is counted . The money is savings and not counted, you can have millions and claim if in no interest accounts.

This is due to change but not for a while.

life_of_pie

Thanks i dont know if its right to claim it was just out if interest . We will be poor again soon god knows the prescription charges for my wife cost enough on twelve items a month . lol

princessdon

life_of_pie wrote: »

Thanks i dont know if its right to claim it was just out if interest . We will be poor again soon god knows the prescription charges for my wife cost enough on twelve items a week . lol

You are entitled to claim and many others do. Also could be wrong here but WTC means free prescriptions.

SuziQ

Why not get a pre-paid certificate for your wife's prescriptions? You won't pay more than £104

http://www.nhsbsa.nhs.uk/1127.aspx

life_of_pie

Thanks for the link sorry thats 12 a month not week lol heaven forbid

Ill check that out been a bit lazy with things i fear .

SuziQ

You will save a HUGE amount of money believe me. I am annoyed that no-one has ever told you about this- most good pharmacists would point it out to be honest.

princessdon

I do quarterly and my GP gives very generous prescriptions so I use only 2 per year and time it to the day before.

I sometimes need 3 - but get away with 2 as for my main tablets I get 3 months at a time, so get at the start and end of the quarter.

SuziQ

I do quarterly and my GP gives very generous prescriptions so I use only 2 per year and time it to the day before.

I sometimes need 3 - but get away with 2 as for my main tablets I get 3 months at a time, so get at the start and end of the quarter.

Princessdon, you are lucky-many health trusts now only allow GP's to prescribe a maximum of a month on any one script. My GP has only ever prescribed a month at a time (been on his books 31 years!) As I had cancer I get my scripts free for 5 years, but will have to get a prepayment certificate after that, as I have about 5 -6 per month.

princessdon

SuziQ wrote: »

Princessdon, you are lucky-many health trusts now only allow GP's to prescribe a maximum of a month on any one script. My GP has only ever prescribed a month at a time (been on his books 31 years!) As I had cancer I get my scripts free for 5 years, but will have to get a prepayment certificate after that, as I have about 5 -6 per month.

She is good, first question is always "do you pay"? If yes she allocates longer and always has done.

My Grandma has the same GP and it's month by month as her age means she doesn't pay.

She's good in other ways too - Eg my eldest has a knee problem (caused by her running as she is an avid runner), GP is referring to consultant but prescribed Ibruprofen for her. it's coppers to buy, but she always offers the prescription