We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

80 year olds still taxed?

My dad, god bless 'im, seems to be paying a lot of tax.
As he is of the generation that 'puts up with it' I'm trying to find out stuff, before we go to a tax consultant or IFA.

He has several pensions, including state, and downsized his house so has, say, at least £50k in the bank.

Clearly I want him to spend his money to enjoy himself. As far as I know my mum didn't have enough 'stamps' for the NI to get a full state pension.

We also want to reduce inheritance tax / captial gains etc, even if there is an election soon!

So... anyone with any experience of dealing with this area of personal finance?

thanks

Paul

Comments

  • If his income from his pensions etc is more than his personal tax allowance he will have to pay tax on it, whatever his age. It may be a good idea to ring the tax office and query it. I have always found them very helpful.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Tax allowances and bands here:

    http://www.hmrc.gov.uk/rates/it.htm

    Interest income is taxed @20%.

    No IHT is payable on estates worth 300k or less.

    CGT is not relevant to your own home.
    Trying to keep it simple...;)
  • Cook_County
    Cook_County Posts: 3,087 Forumite
    Part of the Furniture 1,000 Posts
    General advice is to avoid the age allowance trap, so tax-free ISAs,National Savings, offshore bonds and even charitable contributions are really tax efficient.

    Th next step is IHT which generally involves giving away money now but this is always more uncomfortable for all of us as it implies thinking about our own mortality!
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    not enough facts to make any real assessment

    need to know his and hers incomes
    capital and whats it earning
    value of house etc.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617.1K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.