Hi All, if a self employed/employed person received money from a relative that has died, then would that mean that they would have to declare this under income, what has happened is they received about 8k, used 2k to pay off overdraft, put the max they could into an isa 3.6k then the remainder into a savings a/c, do they need to declare this??????
They don't need to delcare the gift (i.e the £8k), only any income e.g. interest that accrued to them between the time of death and the time probate was completed and monies transferred to their name.
This only applies to a share of the 'residue' of the state - any fixed gifts would not acrrue interest.
They should have recieved a R185 (Estate Income) from the person handling the estate to state any income received.
The inheritance is unearned income. You do not pay tax on it, at least not at the level you are talking about. You do though need to declare any interest earned on it just like any other savings interest.
