Inheritance and Self Employed Tax Assessment

nikkidrew0902

My father passed away in 2019 and I am doing my self assessment for my taxes for that year as a self employed individual.
Does anyone know if you need to report to HMRC the money you have received from a parent passing from their savings/property?  My sister was the sole name on the probate as she was in England and I was away abroad shortly after the passing, so we then  split everything after the sale of the house etc and she just transferred it directly to me so not sure if that makes a difference. The money was also not over the inheritance tax threshold. Thanks in advance for any help with this, my accountant is being very slow.

Savvy_Sue

Did any of the money earn interest between your Dad passing and you receiving it? 

• If not, I THINK the answer is no.
• If yes, I THINK the answer is yes. 

So I think you should ask your sister this question ... 

When my own Dad died, there was something - can't remember what - which earned tuppence ha'penny in interest between his death and distribution, and it wasn't resolved within the first tax year, so there were two tax years in which it needed to be declared. There was a form we used - again I can't remember which form it was - to tell the beneficiaries what they needed to declare. 

Keep_pedalling

You don’t need to declare anything other than any interest or dividends received after probate was granted. Any income received before that should have been dealt with by the executor. 

Savvy_Sue

Keep_pedalling said:

You don’t need to declare anything other than any interest or dividends received after probate was granted. Any income received before that should have been dealt with by the executor. 

True, but I know we had to tell our beneficiaries what had been paid in each of those tax years. It may have been for a benefits claim rather than a tax return, but I remember having to do this. We'd dealt with it, but everyone had to be told. 

Keep_pedalling

Savvy_Sue said:

Keep_pedalling said:

You don’t need to declare anything other than any interest or dividends received after probate was granted. Any income received before that should have been dealt with by the executor. 

True, but I know we had to tell our beneficiaries what had been paid in each of those tax years. It may have been for a benefits claim rather than a tax return, but I remember having to do this. We'd dealt with it, but everyone had to be told. 

There should be no need if the executor has submitted a SA form for the estate.

Savvy_Sue

We had done that. One beneficiary wanted the details.

getmore4less

IT can get a little complicated, the administration period can pay tax then give a tax credit to the beneficiary who then reports the income and pays tax but gets a tax credit.

For small amounts many just don't bother.