I'm filling out a Form 54 to claim an income tax refund. However, I'm not sure how to handle an inheritance I received.
(1) Does it go on the form at all, or is it not considered as income, but rather a capital acquisition?
The form says I should specify
(1) Does it go on the form at all, or is it not considered as income, but rather a capital acquisition?
The form says I should specify
The necessary CAT declarations etc. were made back when the inheritance was being processed.
(2) For the purpose of the Form 54 Income Tax Refund claim, in what year am I considered to have inherited it (date of death, date of probate grant, date of actual payment)? The date of death is in one year, but probate was granted the following year, and some payments from the estate were made in the next year again.
(3) I have Form R185: Certificate of Income Tax Deducted showing that income tax was paid on the interest earned by money I was due from the estate in the period between the date of death and the date I received the cash (i.e. I only received the net amount from the estate). Two separate R185 forms dealing with two different tax years, because I didn't receive the inheritance until two tax years after the death. Do I need to specify this on my current Form 54 claim? Do I need to submit a copy of the R185?
(4) I also inherited shares from the estate though they still haven't been transferred into my name. They haven't been sold or anything, and are of very low value. Do I have to do anything about finding out possible changes in their value since the time I inherited them, or does that only apply if/when they are actually sold? I've never had shares before.
(3) I have Form R185: Certificate of Income Tax Deducted showing that income tax was paid on the interest earned by money I was due from the estate in the period between the date of death and the date I received the cash (i.e. I only received the net amount from the estate). Two separate R185 forms dealing with two different tax years, because I didn't receive the inheritance until two tax years after the death. Do I need to specify this on my current Form 54 claim? Do I need to submit a copy of the R185?
(4) I also inherited shares from the estate though they still haven't been transferred into my name. They haven't been sold or anything, and are of very low value. Do I have to do anything about finding out possible changes in their value since the time I inherited them, or does that only apply if/when they are actually sold? I've never had shares before.
(5) Kind of tied in with (3) above, because just thinking about the fact that (3) really relates to deposit interest... I've never considered that to be 'income' subject to income tax. I have a small deposit account, but any interest I earn on it has DIRT deducted at source. Do I have to do anything about that? I never have before.
All the inheritance tax etc. was paid by the executors from the estate before making any payments - i.e. payments were net of CAT.
I'm an ordinary PAYE employee, if that makes a difference. Besides the inheritance and deposit interest, my PAYE salary is the only income I have.
Sorry about all the questions! Would really appreciate help/advice!