Inheritance

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peanut

New Member
Hi folks!

Just a quick question.. Does anyone know if I were to purchase property with cash given to me by my parents would this money considered as inherit tax? I understand the taxman can only go back 7 years.

And also, what would happen to any profits made from property bought with money if its considered inherited? Would I get taxed income made with the inherited money?

Thanks!
 
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FWL

Member
As far as I am aware, it does not matter what you do with the money. If your parents were to die within seven years then the taxman would look to reclaim a percentage. Think of it this way, if you invested all of the money and lost it, would that mean you had no tax liability? No it wouldn't.
 
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diyhelp

Active Member
It may be worth checking out the potential tax liability on profit made with inheritance money with an accountant. As mentioned above, I don't think the taxman would tax you on traditional profits as this would open them up to reduced tax income, if you made a loss.
 
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Longterminvestor

Administrator
As far as the taxman is concerned, if you inherit £100,000 and they will tax you on the £100,000, if this falls within the scope of inheritance tax. As mentioned above, I can't believe that the taxman would take anything extra for any profit made on investing that money. On that basis, they would need to allow you a taxable loss if you lost money on your inheritance.
 
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bracknelson

Member
Inheritances are not considered income for general tax purposes, whether you inherit cash, investments, or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source.
 
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