Please don't use this as fact but as far as I am aware, any money gifted, won or inherited is classed as unearned income and therefore taxable at source, However I believe it is only the interest that is taxable and not the capital sum. Tax liability depends on a whole load of factors such as personal tax allowances and existing levels of salary or interest from existing finance. It would most likely if of significant size that you would need to seek professional advice to be clear.
namtas. If what you say about interest is correct that is very useful!
Monoux... Thanks, but that's Inheritance tax.
Inheritance Tax is payable by the deceased's estate, (if the value of the estate is over the threshold). What I was seeking is info regarding money inherited AFTER the inheritance tax, (if any), has been paid.
At which point I made a phone call, and spoke to someone very quickly, who confirme that income tax is not payable on the money inherited, but it is payable on interest the money has earnt since the death up to the time of distribution.