Inheritance and Child Tax credits

red_dood

Having looked around this forum I have noted that most advice given states that an inheritance won’t affect the child tax credits I’m receiving currently - but if the inheritance money was to earn interest this would be taxable? If I’m understanding this correctly. 

In my circumstances the estate is gradually being sold off and so money is coming in with 20k here, 9k there etc from my parent’s various bank accounts, investments etc (I realise I am very, very fortunate) and later on there will be a sale of two properties, the money I receive is intended to help me buy my first home for my family with any left over to be kept for a rainy day (put away, put in a pension, pay for home improvements etc) 

I’ve got around 13-14k in a LISA to help me with the deposit as well, I understand this doesn’t affect child tax credits but was wondering if there was a threshold for how much can be saved in this? Or whether it’s excluded entirely? 

So what do I have to declare, to HMRC in regards to the above? This is all new to me and whilst I am devastated to have lost both of my parents now and have to live with that everyday, the money has come as a bit of a shock/surprise but it also has an element of stress about it as well. 

calcotti

red_dood said:

Having looked around this forum I have noted that most advice given states that an inheritance won’t affect the child tax credits I’m receiving currently - but if the inheritance money was to earn interest this would be taxable? If I’m understanding this correctly. 

Correct. Interest over £300/annum would reduce the Tax Credits and has to be disclosed. I'm not aware of any Tax Credit thresholds related to ISAs - but obviously they have their own rules.