Inheritance

MattHensley

Hi,
I’ve recently inherited some money from my late fathers estate, the amount is under the inheritance tax threshold, will this inheritance be calculated/included with my salary in my child maintenance payments for the next financial year?

Thanks

xylophone

https://www.gov.uk/government/publications/child-maintenance-compliance-and-arrears-strategy-2018/child-maintenance-changes-to-compliance-measures     seems relevant.

We’ll now include the following type of income in child maintenance calculations:

• assets such as coins, gold and property (not including the paying parent’s home)
• income generated from an asset over time such as property or land, or income generated from a sale
• foreign income
• any unearned income, such as inheritance, rental income and interest on bank accounts

MattHensley

Thanks, I’ve seen that but it’s a little vague, is that inheritance that you’ve been taxed on? Earning an income from it? 

tacpot12

The relevant legislation is The Child Support (Miscellaneous Amendments) Regulations 2018. This says that pretty much any asset, including those held in trust, will be assumed to produce a weekly income that will be included in the Child Maintenance calculation. A link to the legislation is here: 
https://www.legislation.gov.uk/ukdsi/2018/9780111172667/regulation/2

This link translates the legislation so that it is easier to understand: https://www.dovastonlaw.co.uk/changes-child-maintenance/

Zuluneedstoknow

So, does this mean if somebody buys you a house worth £350,000 and then you live in it, you do not have to pay additional payments through child maintenence? If this is your sole residence, not a second house, despite your assets increasing as you then own a house?

I find the website very unclear! 

MattHensley

Your taxable assets haven’t increased and as this property is your sole residence then you won’t have to make any extra payments, if you rent out your previous property then they will take a percentage of that, but as you say the website is unclear, I’ve read and received a lot of contradictory advice over the last 48hrs

Zuluneedstoknow

I think I will seek legal advice...but if you find out please let me know!