at present i am recieving working tax credit and the disability element side as well as i cannot work full time, my question is as my wife is going to inherite 50%of her dads estate i understand i will lose tax cedit but will i lose the disability element side as well?
There is no limit on the amount of capital you can have while claiming tax credits, but if the income from the capital (i.e. the interest &/or dividends) exceeds �300 per year then it is treated as income to reduce your tax credit entitlement. The calculation is done on the whole entitlement so would include the disability element.