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Inheritance Tax - Status of Compensation Payment?
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executor
Posts: 3 Newbie
Hi all
Second time as an executor (unfortunately) but this time a little more complicated than last. I haven't been able to get an answer to this question from general research and HMRC IHT line is impossible to get through to most days.
The deceased estate received a compensation payment post death (not related to their death) claim was made by a family member post-humously. Compensation is not usually classed as income however was also not part of their estate at time of death, so how is it treated for IHT purpose? Not a huge amount £3000, but the deceased's estate is over £325k thresh hold. Any thoughts are most welcome.
Thanks in advance
Second time as an executor (unfortunately) but this time a little more complicated than last. I haven't been able to get an answer to this question from general research and HMRC IHT line is impossible to get through to most days.
The deceased estate received a compensation payment post death (not related to their death) claim was made by a family member post-humously. Compensation is not usually classed as income however was also not part of their estate at time of death, so how is it treated for IHT purpose? Not a huge amount £3000, but the deceased's estate is over £325k thresh hold. Any thoughts are most welcome.
Thanks in advance
0
Comments
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Hi all
Second time as an executor (unfortunately) but this time a little more complicated than last. I haven't been able to get an answer to this question from general research and HMRC IHT line is impossible to get through to most days.
The deceased estate received a compensation payment post death (not related to their death) claim was made by a family member post-humously. Compensation is not usually classed as income however was also not part of their estate at time of death, so how is it treated for IHT purpose? Not a huge amount £3000, but the deceased's estate is over £325k thresh hold. Any thoughts are most welcome.
Thanks in advance0 -
It is treated as an asset of the estate.
http://www.taxation.co.uk/taxation/Articles/2013/08/28/312541/treatment-compensation-iht-purposes-confirmed0 -
Very good happy with that, thanks to you both.0
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