MONEY MORSELS
What tax?
ALMOST half of people who gift money are unaware of inheritance tax rules that could see their estate taxed at 40 pc if they die within three years. Up to £3,000 can be given away each year tax-free, but 12 pc of people over the age of 70 are handing out gifts of £20,000 or more, according to investment platform AJ Bell. Tax is not paid on larger gifts if you survive for longer than seven years, but just 45 pc say they understood these rules.
0pc card
NATWEST has launched a credit card that offers 23 months interestfree on balance transfers and a three- month 0pc term on purchases. The bank scrapped 0pc deals in 2014, which it described as ‘teaser-rate debt traps’, instead offering more transparent cards. It says it has launched the new card in response to customer demand.
EU phone charges
inTernATiOnAL calls made from the UK to an eU country are now capped at 20p per minute. The new rules, introduced last week, also mean texts will cost no more than 6p each. When you use your phone in another country you are ‘roaming’ and these caps will not apply.
Card freeze
NATIONWIDE customers can now stop or freeze debit cards on their banking app if they lose them or they get stolen. If a card is found it can be unfrozen, but if not you can report it lost or stolen via the app and a new card will be ordered automatically. Nationwide says it is looking to roll out the service for credit cards in the future.
Retirement risk
SeVen in ten retirees have not set up a Lasting Power of Attorney, despite a rise in pensioners making their own investment decisions to provide an income. Since the pension rules changed four years ago, an estimated 615,000 people have kept their retirement savings invested while they draw an income. But without a power of attorney in place, they could be left financially vulnerable if they develop conditions such as dementia, which makes decisions difficult.
Energy switching
MORE than 660,000 households switched to another energy supplier in April, the highest monthly total recorded. The latest stats from trade body Energy UK show 668,371 customers moved to another power supplier, an increase of 34 pc compared to April 2018. More than two million people have moved electricity suppliers in 2019, up by 18 pc from the same period last year.
Price cap cut
FirST time buyers in the north of the england could struggle to get on the housing ladder, due to new Help to Buy price caps. The London price cap will stay at £600,000, but in the north east it will be cut to £186,100. The average price for a new build is £ 208,220 in this region, according to estate agents Hamptons international.