Festive tax treats: Top columns of 2023 by Heather Rogers
Heather Rogers is This is Money’s resident tax expert. And the founder and owner of Aston Accountancy has fielded all manner of questions over the past year.
Keeping sales receipts on holiday, giving away assets to avoid care fees, getting stung with a tax bill in a divorce, and many more topics have been covered.
Keep your tax questions coming, by scrolling down to find out Heather’s contact details. And read about three of her top columns from 2023 here.
An octogenarian still working as senior partner in a family firm wrote to Heather about the best way to manage succession to her two sons and minimise any inheritance tax bill.
She wanted to know if she should be transferring her shares in the business to them now.
‘I am loath to do this if not absolutely necessary as it will make this poor old lady feel redundant!’ she told Heather.
Luckily, there is inheritance tax relief designed to help family businesses in this kind of situation. Heather explained the details to give our hard working reader some peace of mind.
It is not unusual for readers to consult Heather about family problems. The grandmother in this case planned to split her estate equally between her two grandchildren, but one had a marriage described as ‘rocky’.
‘To avoid in the future potentially his wife being entitled to some of this inheritance we have discussed the option of my grandmother leaving 100 per cent to myself,’ our reader wrote to Heather.
‘My brother and I have a very good and close relationship. This would keep the money safely under my control. I would then when the time is right use the money to provide things for my brother such as a car, holiday and so on.’
The reader was concerned though about the tax implications of spending potentially large amounts on ‘gifts’ for their brother.
Heather ran through the options open to this family, but warned there was no way of completely guaranteeing protection of a future inheritance in this scenario.
Many people want to avoid inheritance tax but not many move to the other side of the Earth to do it.
Our reader admitted the sunshine the beautiful country of Australia enjoys was another important reason why he emigrated in 2005.
‘Whilst I am not wealthy, my estate is likely to exceed the current UK inheritance tax threshold,’ he wrote.
‘Australia, being a far more enlightened country, does not have this death tax – pay during your lifetime and get clobbered again when you die.’
Heather explained that how your estate is taxed depends not only on your residency but on your domicile, how these work in general, and their bearing on this case.
Please note that the information box by This is Money in this column about how inherited pensions are taxed in the UK is now superseded by news in the recent Autumn Statement.
The Chancellor has dropped plans for tighter tax rules for pensions inherited from people who die aged under 75.
Ask Heather Rogers a tax question
Tax expert Heather Rogers answers our readers’ questions
Heather Rogers, founder and owner of Aston Accountancy, is our tax columnist. She is ready to answer your questions on any tax topic – tax codes, inheritance tax, income tax, capital gains tax, and much more.
If you would like to ask Heather a question about tax, email her at [email protected].
Heather will do her best to reply to your message in a forthcoming monthly column, but she won’t be able to answer everyone or correspond privately with readers. Nothing in her replies constitutes regulated financial advice. Published questions are sometimes edited for brevity or other reasons.
Please include a daytime contact number with your message – this will be kept confidential and not used for marketing purposes.
If Heather is unable to answer your question, you can find out about getting help with tax here, including sources of free professional advice if you are elderly and/or on a low income.
You can also contact MoneyHelper, a Government-backed organisation which gives free assistance on financial matters to the public. Its number is 0800 011 3797.
Heather gives tips on how to find a good accountant here, including when to seek help, hiring the right type of firm and typical costs.
