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Tax on a settlement agreement
I have raised a claim against my employer for disability discrimination. ACAS say they have offered £50,000 subject to terms to settle the employment tribunal claim (I would remain their employee). I would like to know what tax I would pay on this amount - i.e. what, roughly, would I actually receive in my bank account (my…
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IHT transferable nil rate
My first wife died in the late 80s and all her small assets passed directly to me. Does the transferable nil rate apply at 100%.My second wife died in 2010 and used most of her nil rate band to provide for her children through 50% of the value of our house amounting to about 90% of the then nil rate band. My third wife's…
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In form IHT403, what is definition of Rents in section for gifts out of regular income?
I have a rental property and am assembling records for IHT403 under the section on gifts out of normal income. Am not clear if Rents means actual rental paid or is the net income after expenses as it is defined in Self-Assessment. Have checked Guidance and can't find anything specific. Can anyone clarify for me please?…
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Inheritance Tax, 7 year rule and a gift overseas
Hi, I am aware of the 7 year rule for gifts for inheritance tax but have a few question about recipients that live overseas. Assuming the person making the gift dies with 7 years does it make any difference if the recipient lived overseas at the time of the gift. Would it make any difference if recipient was overseas at…
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Trade Representative Officer
HiI have my own ltd company, three years I decided to sell up my house and retire to Bulgaria, provisions on getting a visa is I had to come as a TRO. There were and are a lot of expenses in enabling this year to year.I don't work or have any income. I have asked my own accountant but getting him to respond to a email is a…
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Captial Gains Tax on sale of a retirement apartment
To help me with my pre-planning, please let me know if any of these costs would be disallowed in the calculation of CGT. cost of the solicitor on purchase EPC for sale cost of the transfer pack from the service provider cost of the transfer pack from the landlord agent's fees cost buyer verfication solicitor and…
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HMRC Webchat
Can anyone tell me if webchat is still up and running. On their website it says it`s manned Monday to Friday 8am to 8 pm.
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INHERITANCE TAX - WHAT IF WE BOTH DIE TOGETHER?
Firstly, I hope I have put this message in the correct category. I have watched Martin's useful short video on IHT pointing out that under the current regime few of us will be caught by its net. I believe my wife and I fall into that category. We have both recently retired and a best estimate of our assets (including our…
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Inheritance Tax Transferable Nil Rate Bands
Scottish Law - Warning!! Sadly my Father-in-law passed last week so we are now starting planning / getting to probate/confirmation. His wife passed in early 2000's - so am I correct in assuming any nil rate band due to her (IHT nil band was around £250K then) will be usable by for my FIL's estate MINUS any gifts she passed…
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High income and exceeding pensions allowances
Any suggestions for reducing taxable income for someone who earns £130k+, but already exceeding annual £60k pension allowance (due to high employer contributions?) Would junior SSIP payments or salary sacrifice EV scheme be options?
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Avoiding 40% income tax rate by buying added Alpha pension
Grateful for any advice on this (and my first post). Current taxable income is under the 40% threshold. It comprises salary (net pay scheme) and some gross savings interest. Tax code is 1257L. Further savings interest is payable in Jan 25. I know this interest won’t be reported by banks etc until 25-26; 23-24 savings…
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Gifting
My Nan has just sold her house and wants to know how much she is allowed to give me and also can she buy me things like a car?
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Self-employed balancing payment question
I can't seem to find this answer out how the balancing payment is calculated exactly: I'll use simple numbers for my example so that it's easier to calculate: Current year: Income tax: £7000 NI4: £2000 SLC: £2000 NI2: £200 Total tax: £11200 Payments for payment on account = (IT) £7000 + (NI4) £2000 = £9000 (2 payments of…
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"Add more information" in HMRC's Self Assesment online
I've nearly reached the end of my first Self Assessment online, and I get to the page where I have 700 words to add extra information. It doesn't say anywhere optional, so I understand is mandatory? is it where I should describe my business? how I operate? how I've come to this incomes and expenditures and my future plans?…
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Declaring dividends AND capital gains / rates to use
Hello MSE forum community. Will be most grateful for any wisdom received on this topic. Couldn't find a previous post that addressed, sorry if I missed. Tax treatment on dividend or capital gains income is clear from HMRC website when considered separately. But not when earned in the same tax year together. Example…
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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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Unerstanding and managing inheritance tax
Having retired and now being in our 60's with two adult children, thoughts are turning to IHT (probably a bit late but there you go). My understanding on the best ways to plan for the tax are: 1. Don't die. 2. Spend it all. 3. Move somewhere that does not charge IHT. 4. Give it away 7 years before you die. 5. Put the money…
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Separating and property issues
Scenario: Married couple separating. They own their own leasehold property (Property 1) of value circa £140k as joint tenants and live together. Intend to live apart. Wife plans to buy another leasehold property (Property 2) of approximate price £140k when resources allow and immediately move to it. Queries: I'm struggling…
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Higher rate tax (just) - Make AVCs to USS Pension
Hi everyone, I'm currently in the USS pension scheme and pay contributions via salary sacrifice. This year i'm likely to tip over into 40% higher rate tax. Gross salary for the year is likely to be £50,895 after pension and a current additional voluntary contribution. Is it worth upping my AVCs by £105 a month to keep my…
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Beware savings income losing you the Marriage allowance
Even though I only have a small amount of savings income (well below the amount you are allowance to get before paying tax) I have just effectively paid 37% tax on the little savings income I have because it caused me to lose the marriage allowance. My income excluding savings income went up this year to just below the 40%…
