We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Tax due on compensation?

Options
My father died a few years ago and I'm his sole beneficiary and was executor. I had a letter from Halifax yesterday (addressed to the executor of the estate) saying he was misadvised about an old investment (a PIP ; personal investment plan). They said they are offering the estate £20k in compensation. This came as a big surprise as although I was aware of my father's investment, it was settled years before his death.

I phoned them and they said it's genuine. However, does this count as income tax for me, or is it a part of his estate and therefore subject to IHT? He was way under the IHT limit so if so I think no tax due?

Comments

  • Savvy_Sue
    Savvy_Sue Posts: 47,312 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It's part of his estate.
    Signature removed for peace of mind
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    No tax payable involved . Good old dad , still looking afor you x enjoy your windfall
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.