Pretty sure not. ( I expect someone qualified will answer definitively)
I appreciate that there's not likely to be any simple answer to this but I'd be grateful for the experience of anyone who's gone through all this themselves...... I am one of the executors of my mother's estate and I am concerned about the question of income tax. Does anyone know if the final amount of inheritance is treated as income for tax purposes?
Pretty sure not. ( I expect someone qualified will answer definitively)
Cheers..
Jase
Everyone in the 2019-20 tax year has a tax-free inheritance tax allowance of £325,000 – known as the nil-rate band. The allowance has remained the same since 2010-11. The standard inheritance tax rate is 40% of anything in your estate over the £325,000 threshold.
Paging draftsman to the G&D!
When you look long into an abyss, the abyss looks long into you.........
Went through it about 3 years ago, estate was sub £325k went through probate via a solicitor and apart from solicitors fees which were about £2k there was nothing else to pay, hope that helps.
Went through it 3 years ago and very similar nothing to pay because it was below the threshold, I didn’t use a solicitor just did it myself but the estate was pretty straight forward and very little value .
Obviously not familiar with OPs case but if his Father had passed away and left everything to his Mother the tax free allowance would now be doubled, so £650,000.
My understanding anyway.
Edit - and condolences.
Last edited by Kingstepper; 8th November 2019 at 20:33.
As said, the actual inheritance is not subject to income tax, but inheritance tax, which the tax free limit is from £325k to £950k depending if the deceased was married and if deceased spouse left everything to them, plus if there's a house. There could be income tax liable on any investments in the estate that create income between the death and final distribution, for instance rent on a rental property taken by the estate after the death but before distribution of everything
Inheritance tax, if due, is deducted from the estate. The beneficiaries do not pay income tax on their inheritance(s)
Sent from my moto e5 play using Tapatalk
Many thanks, all. The estate is modest, and nowhere near the £325000 in total. I just needed some info to pass on to the other beneficiaries.
Rob
"Well they would say that ... wouldn't they!"
That's somewhat puzzling Dunk. The bank wouldn't have a clue as to what any deposit of any amount, (let alone anything over £20K), was about. I know this for two basic reasons, a) I used to work for a Bank and b) I have had quite a number of deposits into my bank accounts well in excess of £20k with no questions asked whatsoever.
Now, if you're talking about solicitors acting for/as the executor to a will then they will probably ask for proofs of identity of any beneficiary - but that's an entirely different matter.
Best Regards - Peter
I'd hate to be with you when you're on your own.
Isn't it 20k in cash?
With a cheque there's a trail as to where the money's coming from.
Uh
Sent from my iPhone using TZ-UK mobile app