Inheritance/WTC

Apr 18, 2011 2 Replies

I am on WTC as I'm a very low wage earner with very little income. I will inherit half a house and some cash soon. I will lose my WTC but when do I tell the tax man? The day I have the cash in my bank account or now? Selling the house could take a long time and meanwhile I have to live and need my WTC just to exist.


I don't trust my recollection, but if HMRC's guidance is right then you are worrying too much. Capital like that is not taken into account for WTC. See eg

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page 22 "What about capital?

We will not normally take capital (that is, deposits in current and savings accounts at banks and building societies, most lump sum payments and the value of property, shares and other investments) into account when we work out your entitlement to tax credits."

You should of course tell HMRC if you start to get more income as a result of your inheritances - eg interest or rent.

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