Who charges what among big lenders

HSBC Overpayments of up to 20 per cent can be made to the standard monthly repayment without incurring an early repayment charge. Early repayment charge (ERC) applies if you increase your standard monthly payment by more than 20 per cent or repay over and above your standard monthly payment during a fixed or discount rate period. This does not apply to tracker rates or the HSBC variable rate, where unlimited overpayments are allowed without incurring an ERC.

LLOYDS TSB Sometimes ERCs are payable and apply until a specified date. So if you repay your mortgage in full, or repay more than 10 per cent in any year, you may be charged a fee that will be a certain percentage of the amount you repay.

Nis often assumed that there are immediate income tax charges upon gifting money to individuals, but this is not the case. Usually gifts made by individuals to friends or relatives fall into the rules of inheritance tax (IHT). These rules govern the charge that arises on an individual’s estate when they die as well as any transfers of value or “gifts” that are made during lifetime.

Subject to certain allowances and time limits, gifts are added to your estate upon death and are subject to tax if the value of your estate is above the IHT

“Small gifts up to £250 per person per year are exempt” Neil Mitchell of Mazars

threshold or “nil rate band” (currently £325,000).

Each year, you have an annual IHT allowance of £3,000 worth of gifts. If you have not used your allowance for the previous tax year, then you can also make use of the allowance in the current year allowing gifts of up to £6,000.

There are other exemptions available for making gifts without any IHT implications:

Small gifts up to £250 per person per year

Parental gift of £5,000 on marriage or civil partnership l Neil Mitchellisapartnerat Mazars

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