Tax on property, money and shares you inherit
Money and shares
You do not usually have to pay Income Tax or Capital Gains Tax immediately if you inherit money or shares.
HM Revenue and Customs (HMRC) will contact you if you owe any Inheritance Tax.
Income Tax
You may have to pay Income Tax on:
- interest you earn from money after you inherit it
- dividends paid on shares after you inherit them
If you have an ‘R185 (estate income)’ form
The personal representative (an executor or administrator of the estate) may give you an R185 (estate income form) when you inherit.
This gives details of any Income Tax that was paid on your inheritance between the date the person died and the date the inheritance was passed on to you.
You will need this form if you complete a Self Assessment tax return or to claim a tax repayment from HMRC.
Capital Gains Tax
You’ll have to pay Capital Gains Tax if you sell shares you inherited that went up in value since the person died.