Inheriting Money

[Khandro]

Do I Pay Taxes When I Inherit Money from a deceased distant relative? She died intestate and a firm of solicitors has been acting executors for the estate. It isn't a huge sum (unfortunately) but do I need to declare it on my tax return please?

[Old_Geezer]

No expert, but when my parents died tax would have been levied on the estate had it been large enough, before my siblings and I got to it. I don't recall tax being paid again when it reached us.

[fiction-factory]

No tax to you on the gify, although interest would be taxable beyond a certain figure if you are a basic rate/higher rate tax payer

[bhg481]

No

[Neveracrossword]

We didn't have to declare the sum itself, but we did have to declare the (very small) amount of interest the sum had earned before the estate was dealt with. I think the solicitors sent us a little form, with the details of the amount, specifically for HMRC.

[fiction-factory]

It doesn't make any difference whether the person leaving the money was a close or distant relative, friend or stranger

[Khandro]

Thanks, I feel better already.

[Peter Pedant]

no
no tax
you pocket the sum and spend it thinking of the dead relative

yes to the interest bit - peanuts at 0.5%
and if they are shares and have fallen in value there is an available adjustment - sortta kinda obvious really

[Peter Pedant]

In Belgium which I know we are not in

the lucky beneficiary pays the tax
and it is common to refuse the bequest !