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How do personal pension contributions affect dividend tax?
How do personal pension contributions affect your tax situation when you pay yourself via dividends? For example: Dividends received: £37,700 and let's assume for now no other income. A dividend of £500, means that tax is due on £37,200. (£37,700 - £500 =£37,200) Dividend tax on 8.75% on this amount means that tax £3,255…
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CGT on transfers of accumulation funds between spouse
Hey, Can anyone point me in the right direction as to how to correctly declare this to the tax man? I owned units of an index accummulation fund for several years. I have declared and paid tax on the reinvested dividends from this fund. I have now transferred ownership of half these funds to my spouse (who lives with me…
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Payroll Dept Incompetence - P45
Sorry for the long waffle but want to get all facts in there. I retired 6 weeks ago on 6th September. My final pay came through as normal on 25th followed a day later by my P45. I noticed that I was about £1400 short in the pay (quite a normal occurrence for the payroll dept, Incompetent does not begin to describe them).…
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IHT Mistake??
hi, could you please help me with this: My husband's mother died 25 years, leaving her estate to his father, which was a few hundred pounds and at that time the house was never in her name, but she was the beneficiary if the father died first. The father has now died, and the person doing the probate has calculated it like…
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Inheritance tax - regular gifts from excess income
Couple of questions on this please: Is income only earned income or also pension income? ( regular DB income is relatively easy to value, what about variable lump sums out of DC including the tax free element) What sort of records are required to prove gifts out of regular income? Considering nursery, private school and…
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Capital Gains after moving back into a property
Hi, We bought a house in 2001 for 84k- we lived in it until 2012 (nearer to 12 years than 11). We then purchased our 2nd home. The first house has been rented out since then. It’s is now worth £300k We’ve spent 30k on an attic conversion. As things stand now, what would we pay in CGT (we are both paying tax at 20%) (both…
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Are eBay sales to USA count as foreign income for the HMRC?
I was just about to complete my first Self Assessment tax for last year, but I have been asked if I received any foreign income. Most of my sales were through eBay, and were to overseas buyers, USA, Canada, etc. Do I have to say yes, this is foreign income as it comes from abroad, or not, because I am resident in UK and…
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Not sure why tax is being deducted
I have a small DC pension from which I'm taking £100 per month on the 15th and up until a few months ago my Tax Code ensured that this was always paid in full with no tax needing to be deducted.However a few months ago the provider modified their processes and so that pension payment was ended and a new one established and…
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Capital gains, Property, zero or low income.
Having looked at various sites I am not finding the answer to this. I do understand the calculation to work out how much tax would be due using the 18% & the 24%. I've also used various calculators to check the figures but the question I cannot seem to find an answer to is this. Taking the GOV.UK site as an example, there…
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inherited property and capital gains tax
The forum's input on this situation would be much appreciated . My dad died in 2015 and my sibling moved into his house 9 months later , probate value was £160,000 and todays value will be in the region of £300,000 plus , sibling has spent £40,000 on renovations . The property still belongs to the estate ( my late father…
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Most tax-efficient wage for single-director-owner-employee micro-company?
Each year for several years I have been paying myself the Primary Threshold (currently £12570) as a wage, in classic micro-company fashion. My accountant (who only deals with the accounts of the company, not my personal accounts and tax matters) explained to me a couple of years ago that, although there is now a gap…
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Need help understanding Payment on Account
Hi all. Every year I get confused over this, though I left myself a note last time, but just want to double check this. So when I filled out my 22/23 return, I made the following payments on account: 1st payment on account for 2023-24 due 31 January 2024 £1,663.10 - Paid 2nd payment on account for 2023-24 due 31 July…
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Gifts from savings account
I have a small low interest savings account into which I place a considerable portion of my pension each month from holidays etc, this does not affect my lifestyle. I never have more than about £10000 in it. If I gift my son £5000 from that account is it still classed as coming from my income or does the fact that it's…
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Stamp Duty on replacing main home when you own buy-to-lets
I'm not sure but I believe my solicitor may be telling me a load of nonsense. Can anyone here confirm for certain what google searches seem to show, namely that an owner of buy-to-lets only pays the standard rate of Stamp Duty if simply selling one 'principal private residence' and replacing it with another... i.e. moving…
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Do you get taxed on selling shares given to you by your employer?
Hey all, The company I used to work for would award me shares every year. I'm in the process of selling my flat and the money from these shares would really help towards buying the next property. I no longer work for the company and being based in the UK the shares are actually handled by a US stock firm. So just wondering…
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Inheritance tax, wedding gift and other things
Hi everyone, We are coming into a situation and just looking for some guidance. This is more for me being pre-armed with some info and questions to ask a financial adviser that we are booking in to see next week. My future parents in law have both unfortunately within 3 months of each other been diagnosed with stage 4…
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Car Allowance - Included or separate to salary?
Hi all. I tried to order a car this morning via my employers NHS Fleet Solutions contract. I currently receive a base salary with a car allowance on top, and I'm taxed on both under the 1257L code. Under my order I advised my current income as base salary + car allowance, however Payroll have rejected the order as they…
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Downsizing relief after gift of property to children instead of sale
Hi there, would anyone know the answer to the following? have found multiple examples of the first scenario but nothing concrete for 2) and 3). I believe no IHT to pay but wanted to be sure. Elderly widow has £400k house and 2 x NRB + 2 x RNRB (so £1m in total). 1) she sells house for £400k in 2022 and passes on £1m cash…
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Simple assessment MIA what next
I still have not received my simple assessment which normally arrives in July. I contacted HMRC & the person I spoke to says there is nothing for 23-24 showing on my account. There should be state pension, personal pension & some taxable interest. So according to them no tax due, which I know is not going to be true. So…
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CGT on Temporary Property
I bought a house (renovation project) and bought another one to live in (paid 2nd home SDLT). The work took 2 years and I decided to move back to the renovated house even though loads of work still needs to be done. I'd registered the other house with HMRC as my primary residence. I now need to sell the other house or rent…
