Tax again?

[poolger]

When my late father died some money was taken for inheritance tax. We have not had the estate money yet but I was told when I get it yet more tax will be taken off as its now in my name. Is this true and if so how much.

[dzug]

Possibly. The Inheritance Tax is calculated on the value at the date of death. After that there are two possibilities, either or both of which could apply:

If the asset is sold (by the estate) for considerably more than it was valued at the time of death, then there could be Capital Gains Tax to pay - not sure of the rates as there are special rules and allowance for estates.

If the asset was invested in an interest bearing account then there will be income tax to pay on the interest, probably at 20%.

Neither of these will you have to pay direct - they will be taken out of the amount you receive.

[poolger]

Thanks. Thats helpfull.