Hi New to forum. Asked this in another forum but any tax experts please help.
Today out of interest i phoned the Tax Credit people out of interest i have recently returned to work and having a disabled wife i was interested in the possibility of Tax Credits .
The lady i spoke to seemed very robotic in her mannerism and said i would probably from the figures i had given qualify for £90 PW Aprox . During the conversation i had asked to ask a question as she was in robot mode ,but been told to wait till the end .
The end arrived and i asked my question " Does my wifes inheritance in 2012 of £35,000 affect my ability to claim ?
Oh she said why did not you mention this ? I tried to i said you told me to wait .
She asked me if when my wife received the Inheritance did the letter from solicitor state if it was taxable income ? I said it did not just the usual waffle about income based benefits etc .
She said it would be counted as taxable income . I asked my friend an accountant about it he said the money is classed as savings and is not taxable income . However interest earned in the money might be considered so .
I also asked the solicitor concerned he said that it was probably not taxable income and to take the accountants advice who was best qualified .
A few facts my wife was not sole beneficiary and the total estate was not worth more than £300,000
The estate was dealt with properly by a probate firm
My wife is disabled and does not work i have until recently cared for her and received carers allowance events have allowed me to at last return to work thank god !
However when my wife inherited this money we found we were immediately not entitled to income based benefits like housing benefit income support etc . As a result the money quite rightfully has paid rent and council tax and other bills that is only fair .
Can anyone advise if the money is taxable income most people i have asked have said no only money generated from the money is for eg interest .
The money is not in a savings account so interest has been very small anyway i am guessing possibly £10 since being in receipt of the £35k if its not in a savings account does that make something else ? Does it have to be in a savings account ? Does the £10 need to declared to the HMRC ?
My wife receives the soon to vanish Incapacity benefit contribution based and also DLA high mobility and middle care rate we told the dwp of my wifes inheritance they advised neither were affected just income support carers allowance and housing benefit . They said they werent interested and thanks for informing them . Obviously my income based benefits were stopped . We lived off the money since last May 2012 .
Any advice welcome is this Taxable income ?
Last edited by life of pie; Today at 8:18 PM.
Today out of interest i phoned the Tax Credit people out of interest i have recently returned to work and having a disabled wife i was interested in the possibility of Tax Credits .
The lady i spoke to seemed very robotic in her mannerism and said i would probably from the figures i had given qualify for £90 PW Aprox . During the conversation i had asked to ask a question as she was in robot mode ,but been told to wait till the end .
The end arrived and i asked my question " Does my wifes inheritance in 2012 of £35,000 affect my ability to claim ?
Oh she said why did not you mention this ? I tried to i said you told me to wait .
She asked me if when my wife received the Inheritance did the letter from solicitor state if it was taxable income ? I said it did not just the usual waffle about income based benefits etc .
She said it would be counted as taxable income . I asked my friend an accountant about it he said the money is classed as savings and is not taxable income . However interest earned in the money might be considered so .
I also asked the solicitor concerned he said that it was probably not taxable income and to take the accountants advice who was best qualified .
A few facts my wife was not sole beneficiary and the total estate was not worth more than £300,000
The estate was dealt with properly by a probate firm
My wife is disabled and does not work i have until recently cared for her and received carers allowance events have allowed me to at last return to work thank god !
However when my wife inherited this money we found we were immediately not entitled to income based benefits like housing benefit income support etc . As a result the money quite rightfully has paid rent and council tax and other bills that is only fair .
Can anyone advise if the money is taxable income most people i have asked have said no only money generated from the money is for eg interest .
The money is not in a savings account so interest has been very small anyway i am guessing possibly £10 since being in receipt of the £35k if its not in a savings account does that make something else ? Does it have to be in a savings account ? Does the £10 need to declared to the HMRC ?
My wife receives the soon to vanish Incapacity benefit contribution based and also DLA high mobility and middle care rate we told the dwp of my wifes inheritance they advised neither were affected just income support carers allowance and housing benefit . They said they werent interested and thanks for informing them . Obviously my income based benefits were stopped . We lived off the money since last May 2012 .
Any advice welcome is this Taxable income ?
Last edited by life of pie; Today at 8:18 PM.