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Steve Lodge writes the money surgery column in the Financial Times every Saturday. Readers seeking an answer for financial dilemmas should e-mail ask.ftyourmoney@ft.com or write to Readers’ Questions, FT, One Southwark Bridge, London SE1 9HL. We will contact relevant experts for their comments.
Questions are answered on an anonymous basis - -
Make the most of tax-free allowances
As comfortably-off pensioners, we have done well out of this year’s income tax changes – including the “scrapping” of the 10 per cent rate. I am 75 and my wife is 70. Is there anything we can do to make our income more tax-efficient?
What is the logic of the 10% changes?
Wealth Questions (April 12/13) identified how some older people and low earners would still benefit from the 10% income tax band on savings interest. It seems particularly unfair that someone on my very low income should lose out from the scrapping of this lower rate band. Just what is the logic of these changes?
It’s the end of the loophole but not the end of the line
Prior to April 6, small self- administered schemes (SSASs) offered one of the last remaining “loopholes” allowing pension assets to be passed down to family members on death without incurring heavy tax charges. Now, though, that loophole has been closed
Which medical scheme favours the fit?
Am I right in thinking that the value of “free” workplace medical insurance is very variable? My employer is quoting an individual taxable benefit rate of £900 a year. How would this cost compare with private medical insurance bought commercially?
Is there still a 10% income tax rate?
Wealth Questions (April 5/6) says that in the 2008/9 tax year, older people can still benefit from the lower 10 per cent rate for the next £2,320 of their income. I thought the 10 per cent rate was being abolished, hence the political hoo-hah this week. Under what circumstances is it still claimable?
Can I avoid paying tax on my pension?
I am a 70-year-old woman living off a state pension of about £2,000 a year and the 5 per cent interest on £150,000 of savings. With the increase in personal allowance to £9,030 in 2008/9 and with interest rates set to fall further, can I receive the interest untaxed?
UK status needed to grab good rates
Can an American resident (or other foreigner) open a sterling account at Northern Rock in the UK? While I appreciate there is currency risk, there is no bank in the US paying even 4 per cent with its “fully insured” guarantee.
A helping hand with the cost of caring
My husband and I are in our 70s. He has Alzheimer’s disease. We are comfortably off but am I/is he entitled to any benefits such as attendance allowance/carer’s allowance, given his health problems?
Banking turmoil is making me uneasy
Last year, I made investments in both the one and two-year Fixed Rate Savings Accounts from Icesave. With all the recent concerns about how safe banks are, I now feel very uneasy. But I don’t think I can get my money out – can I?
Husband’s dementia forces some changes
My 75-year-old husband has early-stage dementia. I am 70 and in reasonable health. We own our home as joint-tenants, but I have been advised to change this to tenants-in-common and alter my will to leave my share of the property (and other monies) to my children to avoid this being used to pay future care costs for my husband (were I to die first). What are the problems and risks of this approach? I am also concerned that my husband may object to us no longer having “mirror wills”, i.e. he would get nothing from me but I would be the main beneficiary of his assets.
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The advice in this column is specific to the facts surrounding the questions posed. Neither the FT nor the contributers accept any liability for any direct or indirect loss arising from any reliance placed on the replies.
Readers wishing to pursue matters raised in the column are advised to seek professional advice. Letters should be kept as short as possible. This material is intended for UK residents only.
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