tax credits and inheritance

twinkletoe2

Hi all. I wonder if you could help clear this up for me please. Currently I claim tax credits, within the next 6 months to a year I am due to inherit some money once my aunts house is sold. am I right in thinking that it will affect my claim? If so, do I need to wait until I renew or do I need to tell them once I have the money in my account? I've tried ringing but cannot get through and any info I find online doesn't make it clear.
thanks in advance.

Caz3121

the actual capital does not affect your claim, only the interest on the money (if over £300) which would be counted as 'other income'...interest rates being so poor it may not make much of a difference to your claim but you should let them know when the money is in your account and you have calculated how much the interest will be to the end of the tax year together with your income and give them the revised total...unless this figure is more than £5k more than last year there will be no change to your payments

twinkletoe2

Thank you. If there is enough then I'm hoping to pay off my mortgage as soon as possible so I may not earn interest on the money.