On 08/07/15 10:34, ratsack wrote:


"Dave Liquorice" wrote in message
ll.co.uk...
On Tue, 7 Jul 2015 21:43:01 +0100, Tim Lamb wrote:

I thought the value might be considered by IR as unearned income
or
something. So hopefully I should have nothing to pay in those
terms?

Once the total value of the estate has been totted up, any debts
settled, credit colected if that total is over £325k the bit over
£325k will be liable to IHT. Pay that (if any) get probate granted
and the remaining estate is then distributed, tax free, to the
benificaries as per the Will.

If a lump of inherited cash earns interest in a bank account that
interest is taxed in the normal way. Likewise invest the cash in
stocks/shares, any gain when you sell those stocks/shares will be
liable to Capital Gains Tax if the total amount of gains in a year is
over the CGT threshold.

If Harry's wife had any investments they will probably need to be sold

That's not correct.

that depends on whether the law recognises and unofficial marriage as a
real marriage: I can assure you that it is probably true.

One of the reasons to get married is to give legal status to a partner
that they don't otherwise have.


and the proceeds put into the estate, any gains on those sale(s)
would follow the CGT rules.

I think income after death is taxable. I was told because the *earner*
is deceased there is no tax free allowance.

That is income to the deceased estate though not income to anybody
else.

One key rule about tax is that once *you* have paid tax on a given
lump of money *you* shouldn't have to pay tax on it again. "Double
Taxation" is, generally, a big no no.




--
New Socialism consists essentially in being seen to have your heart in
the right place whilst your head is in the clouds and your hand is in
someone else's pocket.