Tax implications vary depending on the type of windfall you’ve received.
Estates may pay inheritance tax (IHT) if they're valued at over the inheritance tax threshold – this is currently £325,000 for 2015-2016. Inheritance tax is payable at 40% over this amount (unless 10% of the deceased's estate has been left to charity, then the rate is 36%).
Inheritance tax is usually paid with funds from the estate of the person who’s died. So in most cases, once you’ve received your inheritance you won’t need to pay any more IHT on it. However, you may need to pay income tax if your inheritance generates an income for you. You may also be liable for capital gains tax in some circumstances. For more information see GOV.UK Inheritance tax.
Often your employer will deduct the tax and National Insurance from your bonus on your behalf.
Lottery winnings and other gambling wins are not considered to be income and are not taxed. But if you give away some of your winnings and die within seven years they might be subject to inheritance tax.
If you’ve come into your money by selling an asset that has increased in value – shares, for example – you may have to pay capital gains tax (CGT). There’s an annual tax-free allowance - for the current limit check GOV.UK Capital Gains tax.