Is it pos­si­ble to owe tax from my state pen­sion?

Gloucestershire Echo - - CASHING IN -

QHMRC has told me I owe tax from my state pen­sion. Surely this can’t be true? Is it pos­si­ble they’ve added my wife’s pen­sion and mine to­gether?

ATHIS is highly un­likely as you are taxed in­di­vid­u­ally. Also, your state pen­sion is paid gross and any tax you might owe on pen­sion in­come is usu­ally de­ducted from other pen­sion sources.

You each have a cur­rent per­sonal tax al­lowance of £11,850 – any in­come above that is taxed at your mar­ginal rate. I’d con­tact HMRC to dou­ble check things.

QMY FA­THER has passed away and I want to move my mum nearer to me.

How­ever, I’ve found out they were per­suaded to take out a shared ap­pre­ci­a­tion mort­gage (SAM) via their bank, and the bank owns 75% of my mother’s home.

I feel my par­ents were to­tally mis­led. Is there any­thing I can do to sort out this mess?

AWITH a SAM, the lender agrees as part of the loan to ac­cept some or all pay­ment in the form of a share of the in­crease in value of the prop­erty. There­fore 75% does seem quite high. Speak to the bank first and if you don’t agree a mu­tual so­lu­tion, con­tact the Fi­nan­cial Ser­vices Om­buds­man on 0800 023 4567.

QWE ARE lucky to have two prop­er­ties as this is our sec­ond mar­riage. We are rent­ing one out. Can we put this rented prop­erty into our grown-up child’s name? Are there any im­pli­ca­tions we should be aware of?

AYES you could, al­though this will then form part of their es­tate. The in­come would then be theirs and not yours. Also, if they were to get into fi­nan­cial dif­fi­culty the prop­erty would form part of their as­sets and could be po­ten­tially lost or sold in bank­ruptcy or di­vorce.

QIS THE ISA al­lowance due to go up in the new tax year? I’ve in­her­ited some money which is a bit over the cur­rent £20,000 limit.

ATHE ISA al­lowance is to re­main at £20,000 for the 2019-20 tax year. If you have not fully utilised this year’s al­lowance do so be­fore April 5, and then you can use next year’s from April 6.

QI WAS born in De­cem­ber 1954 and I’m won­der­ing when I will re­ceive my state pen­sion and how much I will get. Can you please help me?

AYOU should re­ceive your state pen­sion in De­cem­ber 2020 aged 66. Visit gov.uk/ check-state-pen­sion or call the Fu­ture Pen­sion Cen­tre on 0800 731 0175 to get a state pen­sion fore­cast, so you can find out when and how much you are on track to re­ceive.

Think very care­fully be­fore sign­ing over any rental prop­erty over to your grown-up chil­dren

FI­NAN­CIAL EX­PERT TRICIA PHILLIPS AN­SWERS YOUR QUES­TIONS

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