Savings Limits/inheritence for Tax credits

Sir_Danalot

I was wondering if anyone could help me. Getting good info about Tax Credits is a pain so I thought I would use this forum.

I currently recieve working/child tax credits which is about £124 ish a week.

I am self employed.

I am going to inherit some money soon, which could be anything from £30000 - £45000. I am wanting to invest this in a place to live as I'm currently in a caravan! I want to know if my tax credits will stop if I have this amount in the bank, or if it counts as income for that year and then my tax credits will stop. I will still be in the same situation after putting money into a house work wise (moving in with my girlfriend who will take up the slack mortgage wise!) which is me making a loss in my buisness, so obviously it is a concern if my tax credits dissapear. I am aware this may be a complex question, but I would greatly appreciate any input. 1 main point is does it matter how much savings you have? another, does inheritence count as income? What a pain.

[Deleted User]

Inheritance/savings are not taken in to consideration for Tax Credit purposes, only the interest earned from it.

If you have a look through the threads there are 2 or 3 about this same issue that have been answered in the last week or so.

Sir_Danalot

Ok, thankyou. That is good news if it is the case. WHen I actually phoned the tax credits people up they said I would lose my tax credits when I got the inheritence, but to be honest, I don't think the guy I spoke to knew what he wa talking about as he didn't seem to fully grasp what I was asking, hence my confusion.

I would like to find those previous threads on this subject, but there seem to be milllions of em to wade throguh, I'll have a look but if anyone can direct me to them that would be super.

Thanks again for your respone subsoniccoyote, makes me more hopeful!

[Deleted User]

http://forums.moneysavingexpert.com/showthread.html?t=878859

http://forums.moneysavingexpert.com/showthread.html?t=890591

DaisyFlower

Dont forget that any WTC may change if your partner hs an income, as you mentioned moving in with someone else.

HappyDuck_2

please read the guidance book which comes with your renewal carefully before deciding what income to declare.
The section on the hmrc site from the renewals booklet http://www.hmrc.gov.uk/forms/tc603rd-notes.pdf pg 32 & http://www.hmrc.gov.uk/forms/tc600-notes.pdf pg 25 from the application notes both clearly state income from Income from trusts, settlements and estates above £300 needs to be included,

"If you received income from a trust, settlement or a deceased
person's estate, the trustees or administrators will have given you
a certificate telling you what income was paid to you. Include the

gross income (that is, the amount before any tax was taken off)."

Sir_Danalot

Hmm,now I'm less hopeful and have brain ache! There seems to be conflicting opinions on this. Thanks for the info though. Why is nothing simple these days? Maybe I'll just carry on regardless and risk prison if I'm caught, yes, lalala, think of bunnies! :whistle:

donnalove

HappyDuck wrote: »

please read the guidance book which comes with your renewal carefully before deciding what income to declare.
The section on the hmrc site from the renewals booklet http://www.hmrc.gov.uk/forms/tc603rd-notes.pdf pg 32 & http://www.hmrc.gov.uk/forms/tc600-notes.pdf pg 25 from the application notes both clearly state income from Income from trusts, settlements and estates above £300 needs to be included,

"If you received income from a trust, settlement or a deceased
person's estate, the trustees or administrators will have given you
a certificate telling you what income was paid to you. Include the

gross income (that is, the amount before any tax was taken off)."

that is totaly different from inheriting the money,an inheritance is not income.
what that is talking about is if you recieve INCOME from a trust ie:money that has been invested and is paying you an income either monthly or yearly

they are 2 total seperate things.

your inheritance will be fine, just declare if you earn more than £300 in interest