MONEY MATTERS
MONEY EDITOR TRICIA PHILLIPS AND HER TEAM OFFER PRACTICAL FINANCIAL ADVICE
QI INHERITED my father’s house in 2004 and began renting it out. My wife and myself are now joint owners. Our youngest son and his family live there now. If they remain in the property until we die, will capital gains tax have to be paid?
ATHERE is no capital gains tax payable on death. However, if you sell the property before and it’s not your main residence then you could have CGT to pay.
QWHAT are the rules around savings and paying for care? Our dad is about to go into a care home and we wonder whether we will need to contribute anything from his small savings pot.
AYOUR father should have a care and financial assessment. Depending on the level of care he needs and the assets he owns, that would determine who pays what. People can typically get financial help with care if they have assets and savings of less than £23,250.
QI’M 19 and recently started working. I want to save and put cash away towards my future. I keep hearing about ISAs. Are they complicated?
ANO, THEY’RE not. ISAs are tax-free savings products, which means you don’t pay any tax on any of the interest you may earn. You can save up to £20,000 into an ISA in the current tax year.
A cash ISA works just like a bank savings account, while a stocks and shares ISA puts your money into company shares and other investments. You can use either ISA, or a combination of both.
There is no risk to your savings in a cash ISA (up to £85,000 with regulated financial firms, covered by the Financial Services Compensation Scheme) but with a shares ISA you are at the mercy of how markets perform.
QDO I have to pay tax on a payment protection insurance pay-out I have received recently?
AYOU do not pay tax on any returned premiums, but you could pay tax on interest payments you receive from a bank or insurer.