Is it possible to owe tax from my state pension?
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