lump sum from death of a family member

lorraine
lorraine Registered Posts: 404 Dedicated contributor 🦉
in General accounting discussion
I can't seem to work this out easily, and also wouldn't want to not declare something that should be declared on my 09/10 tax return.

What happened is during the year my uncle died and I received a lump sum of X amount. Do I need to put this on my tax return?.

I am currently employed and self employed, and am due to file a 09/10 tax return sometime during this year.

All help much appreciated.

Comments

  • slackda
    slackda Registered Posts: 460 Dedicated contributor 🦉
    I think that the Estate would have settled any tax due as part of inheritance tax, and you wouldn't be laible for 2nd taxation , i,e you wouldn't have to declare it
    ...but im not sure and wouldn;t put it past our government to double tax people when they can.
  • K H
    K H Registered Posts: 81 Regular contributor ⭐
    Any tax due is paid from the estate of the deceased, so any payment to you is tax paid and therefore not subject to further taxation.

    If the amount was substantial and gave an increase in say interest received then i would probably put a note in the additional information box.
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    K H wrote: »
    Any tax due is paid from the estate of the deceased, so any payment to you is tax paid and therefore not subject to further taxation.

    If the amount was substantial and gave an increase in say interest received then i would probably put a note in the additional information box.

    Hi There, I have received a little bit of interest, so therefore it sounds as though I should only declare the interest I have received and not the actual lump sum, is this what you are saying?

    The interest is less than £100, does it still need to be declared???? it seems a bit unfair as this wasn't employed or self employed income!, but then if thats the way it is, then so be it.
  • K H
    K H Registered Posts: 81 Regular contributor ⭐
    Yes,you only declare the interest.

    I meant if the lump sum was sustantial and was likely to give rise to an unusual level of interest or dividends received(depending on where you invested the money) then i would put a note on the tax return.

    the interest receieved would have a tax credit attached which would be reclaimable if your earnings were very small (below the personal allowance threshold) but in any case has to be declared.

    regards

    K H
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    thank you so much for clearing this one up!

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