Inheritance Tax Affairs
Discussion
Any chance of some advice from the learned massive?
I will set the scene.
I have just concluded my dads estate after he died back in April. Probate was granted and the monies paid out to me and my brother. The house deeds are in the process of being swapped over as well.
There was a "death in service" pension lump sum payment made from his work that fell outside the probate situation. His overall "probatable" estate was under the inheritance tax figure as well.
My question is - Is this pension payment taxable at all?
Any help would be apprecated.
I will set the scene.
I have just concluded my dads estate after he died back in April. Probate was granted and the monies paid out to me and my brother. The house deeds are in the process of being swapped over as well.
There was a "death in service" pension lump sum payment made from his work that fell outside the probate situation. His overall "probatable" estate was under the inheritance tax figure as well.
My question is - Is this pension payment taxable at all?
Any help would be apprecated.
The Death in Service payment was never your fathers. It is owned by the pension scheme trustees and is payable at their discretion to anyone nominated by your father on an expression of wish notification. This means that it would not suffer any tax as it would not be paid into your fathers estate. If your father did not complete such a notification, the scheme trustees could choose to pay the money to those they considered the most appropriate (they can also ignore any expression of wish notification and make payment elsewhere).
quote]
THAT'S the question!
The money has already been paid to me and my brother.
[/quote]
As already answered, no tax is due on receiving the money.
However, if you haven't spent the money and it is invested/deposited somewhere, then tax may be liable (income tax, capital gains tax etc). It all depends on the individuals personal tax position and where they keep the money.
THAT'S the question!
The money has already been paid to me and my brother.
[/quote]
As already answered, no tax is due on receiving the money.
However, if you haven't spent the money and it is invested/deposited somewhere, then tax may be liable (income tax, capital gains tax etc). It all depends on the individuals personal tax position and where they keep the money.
Edited by ukshooter on Tuesday 24th November 14:34
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