December 2017 Newsletter : Cylchlythyr Misol Rhagfyr 2017
On 6th April 2017 the Inheritance Tax Laws were changed to allow an additional allowance of £100,000 per person, £200,000 per married couple, where the matrimonial home is passed directly to children or grandchildren.
The new Residence Nil Rate Band provides extra relief for homeowners. In addition to the existing £325,000 per person, £650,000 per married couple, with the new relief up to £850,000 can be left free of tax if all conditions are met, potentially saving up to £80,000 of Inheritance Tax. The first Probate form claiming this additional relief has been submitted and accepted by the Probate and Inheritance Tax office.
Many individuals may be considering Equity release mortgages. These can be advantageous where assets are tied up in the home, but the perils of compound interest can significantly erode the value of the inheritance. In one recent example an initial loan of £70,000 taken out fourteen years ago has now ballooned to £180,000. Please consider very carefully before entering into any such contract.
Car Purchases are often now financed by PCP/monthly payment deals. The cost of these deals has increased substantially in many instances.
In recent months I have been appointed as Financial Power of Attorney for elderly clients, which involves myself dealing with the financial matters whilst a family member is appointed for all health matters.
Good news for Savers with National Savings offering a one year bond @ 1.5%. There are a number of other good deals on the market as interest rates gradually increase.
Remain Scam Aware. In addition to the normal HMRC/TV Licensing scams an old favourite has been spotted stating that someone is the beneficiary of a will in a far off land and the transfer of fees to a person there will ensure great riches!
The annual 31st January tax deadline is fast approaching. Most clients have already had their returns submitted or have forwarded details to myself for submission. If you have not yet already done so, please forward full details to myself at your earliest convenience.
Thanks to all who have taken the time to read and digest the monthly newsletters and for the kind words of encouragement and support.
I wish you all a peaceful Christmas and a Happy and Healthy New Year.
Dymunaf Nadolig dedwydd I chi gyd a Blwyddyn Newydd Dda.