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Inheriting Money

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Khandro | 11:25 Thu 02nd Nov 2017 | Law
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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?
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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.
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
No
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.
It doesn't make any difference whether the person leaving the money was a close or distant relative, friend or stranger
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Thanks, I feel better already.
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

In Belgium which I know we are not in

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

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