Effect on working family tax credit

[mussels]

We have recently inherited some money which if added on to my income for this tax year would push me over the working family tax credit threshold for my current amount of £222 per year. Is an inheritance seen as income by the working family tax credit or is it any interest I make by investing this money that is seen as income for this tax year.

[Lee Young]

If you have inherited a fixed legacy this is capital and will not immediately affect your entitlement (though of course extra income may be generated by the capital received which will be brought into account for this tax year's entitlement)

If you have inherited a share of residue then some of what you have received will be capital and some income - you will need to ask the executors for a tax certificate, so that the relevant figures can be included in this year's figures when the final assessments are made.