Inheritance

[ronnie1234]

I habe some inheritance coming, do I need to advise tax credits?

 

[Mindy_mini]

I wouldn't think so as it's not income but I'm sure others can confirm/correct this

 

[suzib76]

yes as tax credits is a means tested benefit

depends on how much you are getting of course

 

[ronnie1234]

£7000 ?

 

[My_First]

Yes it will be taken into account but you can deduct the first £300, page 20.

https://www.hmrc.gov.uk/leaflets/wtc2.pdf

 

[ronnie1234]

Thanks. Of the money £1000 is being paid directly to me, the other £6000 is a gift from my mum which I'm going to use for a car.

 

[My_First]

Thanks. Of the money £1000 is being paid directly to me, the other £6000 is a gift from my mum which I'm going to use for a car.

You will also have to declare that you have been gifted money. I suggest that maybe your Mum buys you a car direct.

 

[lisa1986]

i was going to say, can you get your mum to purchase the car? it can still be in your name but it wont affect ur tax credits. no point in reducing ur payments when the only extra cash u will have is £1000. Also if you could get the £1000 in cash you wouldnt have to declare it, not that itll take you long to spend it if your like me lol xx

 

[ronnie1234]

I think that is going to be the best way forward, get mum to purchase the car so the money never goes in my bank.

As for the other £1,000 we'll see! If I had that in cash it would be gone very quickly....squandered on clothes, shoes & bags I should imagine!!

 

[lisa1986]

if u declare it youll lose £1000 in TC tho so may aswell have something to show for it lol xx

 

[ronnie1234]

So if I declare the £1000 they will reduce my tax credits by £1000?

 

[nugget80]

my grandad gave me £1000 a few years ago. get gave me a cheque which i paid into back.k then used to pay off my loan... i didnt declare it to anyone as i was on benefits at the time! tax credits won't check your accounts and its a gift not income... i wouldn't even think to declare it!

 

[My_First]

my grandad gave me £1000 a few years ago. get gave me a cheque which i paid into back.k then used to pay off my loan... i didnt declare it to anyone as i was on benefits at the time! tax credits won't check your accounts and its a gift not income... i wouldn't even think to declare it!

No they may not check it, but by not declaring it, its benefit fraud. And if they do check it...well who knows what the consequences are.

 

[ronnie1234]

So I need to tell them about it as it's inheritance & the cheque will be coming from the solicitor.

 

[nugget80]

check their website but from what i read you have to declare income from inheritance or savings not the sum...! so that would mean you don't need to declare yours... it looks like only taxable income is taken into account when calculating your award. give them a call to check if you want to be certain...

 

[My_First]

You are absolutly right. I have just been doing some reading up on it. If the interest on it exceeds £300 a year, then yes you will have to declare it. It other benefits like Housing, CT etc that get affected by savings.

 

[ronnie1234]

Thank you. Where abouts on the website did u find this info? x

 

[My_First]

Thank you. Where abouts on the website did u find this info? x

If you google inheritence and tax credits you will find a tonne of it, also the link on the page before actually has the info too..page 20

 

[ronnie1234]

I will be getting about £7000 paid into my account now. I understand that as long as I don't earn more than £300 a year in interest off it I don't need to declare?

 

[Mummy2B21]

Hiya hun I inherited £80k a few months back but i didnt have to.declare anything mind i wasnt getting ctc though i am pretty certain you will have to declare it if recieving tax credits its best to.give them a ring as tax credits you dont want to.mess about with x