Family split meant I was denied my share of the inheritance
I RECEIVED a letter from Phoenix Life in October regarding an outstanding sum of money in my father’s name.
I sent my identification details, but was unable to answer some questions about my father as I had become estranged from him, my mother and my three brothers for several years — although I went to my father’s funeral in 2003.
I phoned Phoenix Life and was told that, because two of my brothers had not sent any paperwork, it could not release the money.
The firm needs a letter from both of them declaring they have no interest in the money. I have no idea where they live. M. H., Somerset. Being estranged from your family can throw up all sorts of difficulties in situations like this. Thankfully, Phoenix Life has taken a common sense approach.
normally, payment is made to one executor so the money can be distributed correctly.
However, in view of your situation, Phoenix Life has decided to handle things a little differently. it has an obligation to take all reasonable steps to find potential claimants, but it now accepts it would be inappropriate to ask you to help any further. Therefore, it has paid your quarter share directly to you. ON MY HMRC coding notice for 2016/17 I had a personal allowance of £11,000 and a personal savings allowance of £1,000, giving me a tax-free income sum of £12,000.
On my tax letter for 2017/18, the personal allowance changed to £11,500. When I queried why there was no personal savings allowance, I was told this was included in the personal allowance, which suggests my total tax-free sum has been reduced by £500.
There is no personal savings allowance on my 2018/19 letter either, so where has it gone? Mrs J. H., Essex. WeLL spotted. The personal savings allowance did appear on coding notices in 2016/17 and has since vanished. But don’t worry, you are still receiving it — as is everyone else.
i asked HMRC why it’s no longer there and was told it’s because it is not actually a tax allowance, it’s an allowance on interest earned on savings.
it often appears that the lower your income, the more complex tax becomes.
As you correctly state, the personal allowance gave £11,500 of tax-free income for 2017/18. it is £11,850 for this tax year, which ends on April 5, increasing to £12,500 for 2019/20.
The allowance covers income from all sources, including wages and pensions. On top of this, those on low incomes receive a £5,000 starting rate for savings income, giving a potential £16,850 of tax-free income this year.
This is mainly of use to pensioners who are on low incomes but who have accumulated savings during their working lives. The starting rate is eroded by any earned or pension income above the £11,850 personal allowance.
For example, if you earned or had a pension of £13,850, you would lose £2,000 of the savings starting rate, reducing it to £3,000.
Anyone earning more than £16,850 does not qualify for the savings starting rate.
Then we come to the personal savings allowance to which you refer. This allows basic-rate taxpayers and non-taxpayers to earn a further £1,000 tax-free interest per year. The allowance for higher-rate taxpayers is £500, while very high earners paying additional-rate tax lose this allowance altogether.
Finally, whoever told you the savings allowance has been absorbed into the main personal allowance is just plain wrong. I HAVE received my energy from E.ON for many years.
In November, it informed me my direct debit was going up by £30 a month, despite my account being in credit.
I have phoned the firm and got nowhere. I have also sent two emails, only to receive an electronic notification that its staff were ‘very busy’.
I am 92, widowed and I can’t afford to pay such a large bill increase. Mrs J. B., Essex. i senT your letter to e.On as soon as i received it — and waited for a response.
And waited. And waited. And waited.
i chased it. And chased it. eventually i received a simple statement telling me that your direct debit had been put back to the level it had been previously.
That’s great news — but why couldn’t it just do this when you phoned it the first time?
And why did it take so long to provide me with such a simple piece of information?
Perhaps it was just ‘ very busy’ again.