February 3, 2019, 3:53 am
Hello.
My sister bought the family home with my mum and dad on the council buying reduction scheme in 1983.
Shortly afterwards she moved out of the property and rented elsewhere because she got married.
Dad died several years ago and mum died last September.
This means the property now solely belongs to her. She intends to sell the property (she is still renting elsewhere at the moment and has never lived in the property since she moved out).
Could you please advise whether she will be liable for Capital gains tax when she sells this house? I assumed she would be, but she doesn’t seem to think so. I just don’t want her to be landed with a big bill which she has not planned for.
There is no way she will move into the house and it definitely will be sold. It will be sold for about £320,000.
Thank you for any advice.
FB
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February 3, 2019, 9:44 am
Ok here's the observation and Query.
I have been using Government gateway login to access all services I need, ie SE tax, National insurance/pension and Vat etc etc.
Time has come to renew my DBS or CRB, in the past I have used Disclosure Scotland for my Basic Disclosure certificate. ( FYI to work around children).
The only service that the GOV.uk do not allow you to add to gateway is DBS, so now it appears I have to use this NEW GOV.UK Verify to be able to login to not only DBS but I can access all my existing services that I currently use via Gateway.gov.,
However...........,
GOV.UK Verify is to be run by private companies and I am expected to take all my ID and present myself and give my data to a list of companies who as far as I know are not just fly by night but scammers as well.
When I am logged into my services through gateway.gov there is no mention of this apparently new super secure system centralised system to gain access to all my private personal data.
Are the government afraid that gateway.gov is insecure and out of date? why have I not been written to by the government to be told they are farming out my ID to private companies.
Any thoughts anyone....
Cheers
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February 3, 2019, 2:49 pm
Im looking at setting up as a sole trader and have a few questions.
Currently im PAYE but plan on setiing up as a sole trader also.
It will be a coach business that will run mainly at the weekends.
1. I have incurred so far a few thousand pounds of expenses (medical tests, fees to buy website, training fees to learn to drive a bus, test fees, application fees to get the required licence to carry passengers) can i use all of these to offset against my profits and pay lower tax?
2. I will be purchasing a coach about £40k before i start trading which is 100% used only for business use. Can I claim back the tax on this? And do I need to wait to the end of the tax year to claim this? - I read I can claim it back against my previous 3 tax years meaning i would get a tax rebate to the value of £8k - Is this correct?
Also if the above is the case then would I also be allowed to use this to offset against my profits as well as claiming back the initial £8k in tax
Example 1 (make a profit in year 1):
I make £50k profit in first year, the bus cost me £40k so i pay tax on the £10k = £2k tax
This is then deducted from my £8k tax im due back for the initial purchase of the bus.
Meaning im due a £6k tax rebate?
Example 2 (make a loss in year 1)
I make £20k profit in first year, the bus cost me £40k so im down £20k
So would i be due a tax rebate on the £20k loss = £4k tax rebate plus the tax rebate of £8k on the initial cost of the bus. Meaning im due a tax rebate of £12k.
Am I right in the 2 statements above if not can someone correct me?
3. Can i claim back these set up costs if ive paid them before registering as a sole trader or do I need to do that first?
Thanks for the help.
Ray
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February 3, 2019, 7:40 pm
Ive been working abroad for quite some time and intend returning to the UK in April.
I have investments with Interactive Investor that I intend to sell completely this month and reinvest in some completely different UTs.
Will any future liability for CGT post return to the UK be based on the purchase price of the new UTs?
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February 4, 2019, 6:37 am
Hello all,
There are 3 questions Id like to ask your opinions, can these be claimed against CGT.
1) Legal costs whilst living at the property extending / refurbishing, we decided to sell the property, we had a buyer but unfortunately it fell through. Therefore we decided to let it out again, encountering legal costs.
2) Furnishings fee with the tenants leaving the property, we came to an agreement that if they left furnishings in situ, which would enhance the sale, curtains, blinds, rugs etc, (these would be included in the sale) for a fee.
3) Costs In between selling our empty property and it being sold, we paid the community charge
(council tax) plus utility bills.
Many Thanks
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February 4, 2019, 8:15 am
My dad recently passed away and I know that probate should be fairly simple as the will has left everything to my mum. Only issue is my mum has lived and worked here for nearly 40 years but was born in Japan so the simple form now becomes a complicated form. I am not convinced the helpline knew what they were talking about, the hesitation and various on hold points didn't fill me with confidence. So before I start filling in these complicated forms for HMRC just to pay no inheritance tax, has anyone dealt with this before? Can I definitely not fill in form 205 as it is an excepted estate (under £1mill and going to spouse) just because she was born in another country even though she is a UK Domicile?
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February 4, 2019, 10:12 am
A Word of Warning
I came across an error by HMRC and realised that this could affect possibly many thousands of innocent taxpayers.
I am typically average:
I am subject to self assessment
I am retired and in receipt of a pension subject to PAYE
I have interest and dividend income that is not taxed at source
Given the above it is not surprising that when I complete my tax return I would expect to have a Balancing Payment owed to HMRC because my pension has used up my personal allowance so there is tax due on the interest and dividends. Of late, HMRC have started adjusting my tax code so as to collect more through PAYE to try and recover the tax due on interest and dividends more quickly. Fair enough.
This year I had a couple of changes to my tax code as the year progressed. I completed my Self Assessment and it calculated my Balancing Payment. I am pretty sure I did not agree with the figure and changed it. There is no record kept of these things so I have to rely on my memory of that time. I take care to reconcile the tax charge for the year so that I understand how it arises. Deducting the tax paid under PAYE then confirms the Balancing Payment.
A couple of weeks later I received a letter telling me my figures were wrong and the Balancing Payment was increased. I telephoned the given number to discuss this and what followed was someone basically reading figures off the same system that generated the letter. The reason for the change was explained but my protests that it was wrong and illogical fell on deaf ears. I do not think the staff on the telephones are capable of doing more than reading the screens. Actually thinking through what they are reading does not come into it. My protests and requests for an appeal to a higher authority were rejected to the point that I was told the call would be terminated and they hung up mid-stream! The rationale for such disgraceful behaviour is astonishing but that is a separate matter.
The reason given for the underpayment of tax was that during the year my PAYE code had changed and I needed to pay more tax. The change was late in the year and so there was insufficient time to collect all that was due. This difference had been added to my Balancing Payment in order to collect the shortfall. If you are still following this like me you will quickly realise that the whole purpose of a Balancing Payment is to pick up such shortfalls so there is no need to make an additional adjustment. My call handler could not grasp this (basic) tenet of our tax system so I was dismissed.
I turned to the traditional method of writing a letter and in due course received a reply apologising for the misunderstanding and returning my Balancing Payment to my original figures.
My concern is that my situation is very common and must be faced by countless taxpayers. This error was produced my HMRC computers without any human intervention. It is not unique to me. So I wonder how many other taxpayers are being given the same erroneous demands and fatuous explanations?
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February 4, 2019, 11:21 am
So I finally filed my first ever tax return. I'm not nor have I ever been self employed but had to register for this to claim mileage expenses back. I was talked through the process by an adviser from HMRC on the phone and she even gave me the final total I should be claiming for, which was £3252. Thing is, never having done one of these before, I'm slightly confused as on the final calculation it says I need to pay £68.80.
I owe no tax as it was paid through my employer.
I'm totally confused and can't get through to them to clarify whether I'll be getting my £3252 in expenses or will I have to pay them £68.80.
Any help would be appreciated. :o
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February 4, 2019, 1:23 pm
Ive changed jobs from where I had a company to car to having to use my own personal vehicle for business use. I get 10p a mile from my employers and have been told I can claim back the additional 35p through HMRC.
Ive never done this before, how often and when does this need to be done?
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February 5, 2019, 5:52 am
I am closing my limited company and going to work as self-employed/sole trader instead. I am already registered for self assessment as I let a property. I don't think I need to do anything else re: "setting up" as a sole trader, do I? I just need to select "yes" to the self-employment section of the SA form when relevant (when I've earned over 1k??) and fill in the incomings and outgoings?
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February 5, 2019, 7:26 am
Hi All,
I'm looking to get some professional advice to help me unpick a couple of topics. Primarily:
1.) The tapered pension allowance and how I plan for it with a variable income
2.) Ensuring I have fully utilized all of my available carry forward pension allowance.
I have tried to get my head around both topics under my own steam but much of the online documentation is brain hurtingly complex.
Am I looking for an IFA, an accountant, something else? :)
Thanks in advance,
D
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February 5, 2019, 8:17 am
Hello all
I have been reading PIM 2505 and still have a question which I hope you may be able to help with.
I already let one property, paying tax via self assessment.
Last year I moved out of my main house (property 2) and set about upgrading it to let out. Incurred various expenses while it was empty relating to the letting business such as fire and smoke alarms, EICR, upgrades to kitchen and bathroom, advertising costs, council tax, electricity, redecoration, etc
Was about to let it, when, due to unforseen circs, I had to move back in temporarily. Still there, and intending to move out again, but not sure when. At that point will try and let it again.
Question is - are the expenses I incurred in getting property 2 ready to let allowable against my existing "rental business"? or do I have to actually let it and gain some rental income from it before I can claim the expenses?
PIM 2505 seems to indicate that the expenses for property 2 are allowable, as the letting business has already started, but I can't find anything relating to a timescale within which property 2 also has to be let. Would the fact that I moved back in be relevant?
Thank you!
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February 6, 2019, 4:15 am
Hello, I am wondering if anyone can help with my query please, whilst understanding no-one can give financial advice :beer:.
As well as being employed part time, I also run a small business, as a limited company. Turnover is very small, and because I'm also employed I don't consider it worth making myself an employee of my limited company (I don't pay myself or draw dividends).
As the sole director, can I move any company profit into a pension scheme for myself? - even though I am not on payroll and don't draw dividends and am not an employee?
Are there any limits to this? Could I fund an old pension scheme I already have from an employer years ago, or would it be better to have a SIPP?
Currently in place I have:
- 2 x pensions from previous employers
- Local Govt Pension Scheme plus AVCs through current employer
- LISA.
Thanks in advance.
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February 6, 2019, 4:31 am
Hello everyone. I am trustee to my late father's discretionary Will Trust and now want to distribute capital to the beneficiaries and wind it up. Is there a formal procedure to do this?
The trust consists of cash only in a building society account and annual interest earned is under £1,000. It is not liable to Inheritance or Capital Gains tax as is within existing limits. I am reluctant to pay fees for further advice so am posting here. Can I now just distribute the capital among the beneficiaries and close the account? Any advice gratefully received.
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February 6, 2019, 8:13 am
Just a little confused about this and was looking for some advice.
I got my tax code notice today saying that my tax code is going to change, meaning that my total tax free amount is now going to be lower. It also says in note 2, we previously told you that you owe £740 from an earlier tax year. They certainly did not.
This seems to have happened since I made a work expenses claim to get tax relief on some work expenses, which I done through an agent who got me around £800.
I contacted HMRC but I didnt completely understand. They said its complicated and its best to speak with your agent who made the expenses claim. The one thing I did get from them is that after making the expenses claim, my tax free amount went up by around £6,000, meaning I have underpaid tax and thats the reason its going down again.
Is this normal?
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February 6, 2019, 8:35 am
Hi,
Can someone tell me how I know if a company car is better or car allowance. I have just accepted a new role and have to tell them by monday what I prefer.
I have calculated the BIK will be 5200£ or I can have cash allowance of £5500 per year.
To work out which is better do I just apply my income tax band on these figures and then which ever is lower is the best deal?
Please help not sure what I'm meant to be looking for here to determine a better deal as first time experiencing this.
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February 6, 2019, 12:26 pm
So Ive been offered a tax free job in Saudi Arabia for 2 years. I own a property in the UK which I will let but will this give me problems with being classed as resident?
When I come back to the UK, do I have to pay tax on my income? Also, am I better to have a bank account in SA or UK or will it not matter? I assume that I can still pay into my pension when away?
Sooo many questions.
Thanks in advance.
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February 6, 2019, 1:24 pm
Hi, I am a self employed builder, my wife is a part time dental nurse, she now only works 3 days a week as we have a 15 month old daughter. My wife does quite a lot of paperwork for me whilst shes at home, but i don't pay her for doing it as such. With her being employed, but earning well under the tax threshold, would i have to set her up as a payee? I don't have any employees so I am not setup for it. Any advice or experience in this would be much appreciated.
Thanks
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February 6, 2019, 1:46 pm
My wife has just found out that she has a pension that should have started in 2003. Her old employer is now going to pay the pension back pay in a lump sum. Currently she only has a state pension and a small savings income but this lump sum will almost certainly take her into the 40% tax bracket. While realising that income tax will have to be paid on this newly acquired and modest pension does she have to pay on all the past years and at such a high rate?
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February 7, 2019, 1:58 am
Hi,
So i need some advice....
I use my own personal car for business (all round the UK)
I get a monthly car allowance from my employer as I choose to drive my own car rather than taking a company car. This monthly sum is taxed.
My employer provides me with a fuel card for all my fuel (business and personal).
On a weekly expense form i tell my employer how many business and personal miles I drive and the cost of the fuel for my personal trips is deducted.
Several of my colleagues say that I can claim tax relief ignoring the fact my employee pays for a percentage of my personal fuel and gives me a taxable monthly allowance.
Thanks
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