tax credits other income

sinking12

i receive child tax credits and working tax credits and recently lost my wife,i have received a small cheque for under £6000 which was a life policy taken out by my wife many years ago ,do i have to inform the tax credits office of this payment ,ie.is it classed as other income for tax credit purposes or not,i keep getting different answers from the tax credit people ..

pmlindyloo

sinking12 wrote: »

i receive child tax credits and working tax credits and recently lost my wife,i have received a small cheque for under £6000 which was a life policy taken out by my wife many years ago ,do i have to inform the tax credits office of this payment ,ie.is it classed as other income for tax credit purposes or not,i keep getting different answers from the tax credit people ..

You only have to include the interest earned on the amount.

It is the interest that is counted as income not the amount itself.

Your tax credits will not be affected if the interest earned on the £6000 is less than £300 per year.

Here's a link for you:

http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/other-income.htm

Wail

pmlindyloo wrote: »

You only have to include the interest earned on the amount.

It is the interest that is counted as income not the amount itself.

Your tax credits will not be affected if the interest earned on the £6000 is less than £300 per year.

Here's a link for you:

http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/other-income.htm

Does this bit help

You should also include any chargeable event gains from a life insurance policy, for example from the sale of an investment bond. The amount of the gain will be shown on the certificate issued by your insurer.

xylophone

Does this bit help

Not relevant to this type of policy? At all events, if there had been a chargeable gain, the insurance co would have had to issue a chargeable event certificate.

Surely this money is capital in the hands of the beneficiary of the policy - any interest/dividends on investing it would be income.