Johnson on State Pension

Johnson on State Pension

Boris Johnson makes new commitment to triple lock pension

Read more
Royal Fury

Royal Fury

meltdown after Prince George birthday message exposed

Read more
Man U for the Win

Man U for the Win

Manchester United already know their blueprint to beat Chelsea

Read more
Homepage / Business / Pension warning: Withdrawals soar due to ‘Bank of Gran and Grandad’ - effects on your pot
Three Households Can Mix For Five Days Under Covid Christmas Plan, Sources Say Family appeal after Cambuslang teenager Kai Rae goes missing Middle class tax raid as Rishi Sunak’s inflation changes set to cost retirees over £100bn Jamie Genevieve gives interview in bath says success due to being ‘normal’ Shaheer Sheikh finally PROPOSES Ruchikaa Kapoor with an adorable picture Veteran actor and Varun Badola’s father, Vishwa Mohan Badola, passes away at 84 Bigg Boss 14: Kumar Sanu REACTS to son Jaan Kumar Sanu’s allegations; says, ‘I had given my Aashiqui bungalow, took him to Mahesh Bhatt’ [Exclusive] State pension claimants may get a Christmas bonus from next week – eligibility explained Bitcoin price news: BTC crypto could rise SIGNIFICANTLY in 2021 bull run Women shouldn’t have to shoulder modicum of responsibility when nudes are leaked – but we need to teach teens about digital consent Horse and carriage driver had €380 in fake ‘movie money’ Manchester United evening headlines as Bruno Fernandes in spotlight The latest Covid-19 infection rates across all ten Greater Manchester boroughs James Middleton shares emotional tribute after Kate and William’s family dog Lupo dies Man City evening headlines as Guardiola told to sign a striker Meghan and Harry to ‘fade into background’ as Sussexes ‘confuse celebrity with royalty’ Prince Harry’s brutal boast to Prince William: ‘I can do anything I want!’ Family’s bid to take brave girl with untreatable tumour on dream Disneyland trip West Lothian Council staff report an increase in community litter picks Happy birthday, Kartik Aaryan: Deepika Padukone desires to do a film with the Pyaar Ka Punchnama actor Universal Credit claimants may be able to get £140 off their energy bills this winter Bigg Boss 14, Day 44, Preview: Captain Kavita Kaushik saves Eijaz Khan and nominates Aly Goni for elimination? Bigg Boss 14: Sidharth Shukla topples Weekend Ka Vaar episode with Salman Khan to become the top Sunday trend Royal heartbreak as Prince William and Kate’s beloved family dog Lupo dies Dayot Upamecano makes final transfer decision as Man Utd and Liverpool prepare bid Prince Edward controversy of his Cambridge University place despite poor grades Man Utd set to finally appoint director of football which could lead to Ed Woodward exit State pension age changes: ‘We’ve been pushed into further poverty by covid’ says WASPI Bitcoin price could rocket to ‘$1,000,000’ as big institutions buy directly from miners Jamie Laing wows Strictly Come Dancing judges Dublin make it perfect ten in Leinster with facile beating of Meath on emotional night in Croke Park Donald Trump Will Lose One Of His Twitter Accounts To Joe Biden On Inauguration Day Bigg Boss 14: ‘I have been approached many times on different occasions in this season,’ reveals Rashami Desai Madhur Bhandarkar requests Karan Johar to change the title of his web show, Fabulous Lives Of Bollywood Wives; says, ‘It is Morally and ethically wrong’ Kapil Sharma, Bigg Boss 14, Asim Riaz – here are the TV newsmakers of the week Capital gains tax mapped: One London borough will bear the burden of CGT changes Pension warning: Withdrawals soar due to ‘Bank of Gran and Grandad’ – effects on your pot Drunk Scots gran slashed neighbour in doorstep row and left her scarred for life Care worker sacked after being snared with sick haul of child porn videos Comparison site fined almost £17.9m for keeping cost of home insurance premiums high Brexit boom: Sterling surges against euro and US dollar as hopes rise over trade deal Rishi Sunak task force to ensure UK has ‘most competitive’ financial services in the world Police investigate third Salford shooting this week Luxury hotel in Piccadilly Gardens backed by Ronaldo wins planning approval Wayne Rooney’s Ferguson claim with Man United legend set for managerial debut Roy Keane hails Man Utd star returning ‘in better frame of mind’ after Solskjaer issue ‘Meghan Markle won’t dare come back to London’ as atmosphere would be too much – expert Defiant Queen put foot down after royal bid to block marriage to ‘penniless’ Prince Philip Meghan Markle was ‘head over heels’ in love with ex-husband Trevor Engelson Halfords: Boom in bikes and cycling equipment sales doubles profit Non-essential retail should be allowed re-open in December, says infectious disease expert Ireland’s mink population to be culled amid Covid-19 fears Man Utd put on red alert as Jadon Sancho tells Borussia Dortmund he wants summer 2021 move Lewis Hamilton’s nightmare lunch meeting with the Queen: ‘Stepped on her dog!’ Top cop’s concerns over weapons crime in Ayrshire Gordon Brown urges Boris Johnson ‘act now’ and announce Christmas covid plans ‘Don’t steal Christmas!’ Boris Johnson urged to add toys to essential retail list Bigg Boss 14: Relief for Salman Khan and family from COVID-19 scare; to shoot Weekend Ka Vaar tomorrow Pension UK: Britons urged to track down lost arrangements – you may find thousands Kaun Banega Crorepati 12 winner Mohita Sharma gets 2 maggi masala sachets in 1 pack; Twitteratis call her lucky ‘Happy 25th Principessa,’ Aadar Jain wishes Tara Sutaria on her special day; Kareena Kapoor Khan and Riddhima Kapoor Sahni also send wishes Senergy’s thermal solar panels front UK green power revolution HMRC warning: ‘Sophisticated’ email scams surge – how to protect yourself Princess Charlotte’s birth changed the line of succession in historic royal rule shake-up Black Tenant Is Repaid £30,000 After Being Wrongly Charged More Rent Than White Neighbour ‘Yeh Baat,’ Sushmita Sen’s reaction on Money Heist actress Itziar Ituno singing Chunari Chunari is priceless Police launch investigation after car goes up in flames in Bothwell Bigg Boss 14, Day 40, Live Updates: Furious Kavita Kaushik pushes Eijaz Khan into a massive fight Lockdown ‘body blow’ for Scottish retail in vital Christmas season Shehnaaz Gill opens up about perfection as she dons shorts in her latest post Winter Fuel Payment 2020: Payment process begins – but some will need to make a claim State Pension UK: Women urged to check if they are owed thousands in back payments FTSE 100 LIVE: Britain’s FTSE plummets on Brexit chaos – easyJet’s £1.7BN warning Barack Obama shares playlist of songs that inspired him during presidency Huawei offloads Honor brand in face of US sanctions Bitcoin to soar to $318,000 by 2021 as expert claims ‘New global economy emerging’ More than 1,000 Covid-19 patients in Greater Manchester have died in second wave Shopper stunned by graphic detail added to B&M Christmas decoration Manchester United have the chance to fix a major issue over the next week Arsenal aim to beat Man Utd to signing to fulfil Pierre-Emerick Aubameyang ‘dream’ POLL: Should Queen reinstate Meghan Markle and Harry’s HRH titles as gesture of goodwill? How Queen’s ‘highly significant move’ swayed public opinion over vaccine Man Utd boss Solskjaer has three dilemmas to solve before end of international break Royal Family LIVE: Charles’ Berlin speech risks breaking protocol and infuriating Queen Prince Charles proposed to his cousin before marrying Princess Diana but was rejected Princess Diana had to pass ‘test’ with ‘flying colours’ before marrying Prince Charles Fire crews at Greenock Art Guild battling huge blaze Boris Johnson self-isolates after coming into contact with Covid-19 case Kangana Ranaut gives a pahadi twist to her saree and dances her heart out to Kangari music at her brother’s wedding — watch video Taimur Ali Khan yells, ‘No photo,’ while strolling with dad Saif Ali Khan and mommy Kareena Kapoor in Dharamshala — watch video Virat Kohli reminded of his fireworks celebration with Anushka Sharma and RCB after he requests people to not burst crackers — read tweets PIP decision appeal: How to appeal a PIP decision – explained Addmaster aids Asda push for more hygienic trolleys The I’m A Celebrity Campmates’ Arrival At The Castle Looks Suitably Terrifying Cold Weather Payment 2020: Online tool shows whether you’re set to get a £25 payment Bitcoin surge escalates as market ‘recognises it’s superior to gold as a store of value’ Meath GAA legend Graham Geraghty returns home from hospital after serious illness Stephen Kenny defends Republic of Ireland mentality ahead of crucial Wales clash Diwali 2020: Let Sonakshi Sinha, Kriti Sanon, Sonam Kapoor teach you how to dazzle during the festival Ranveer Singh has the cutest wish for his ‘Gudiya’, Deepika Padukone on their second wedding anniversary — view post

Business

Pension warning: Withdrawals soar due to ‘Bank of Gran and Grandad’ – effects on your pot

As such, many over 75s are choosing to withdraw money from their pension to gift to their relatives in a legal avoidance of tax.

Tim Holmes, Managing Director at Salisbury House Wealth, commented on the matter.

He said: “More and more over 75s are taking money out of their pension to help family members.

“With coronavirus hitting the younger generation hardest, we expect to see withdrawals rise even further.

“As property prices continue to climb, the Bank of Gran and Grandad is vital in helping millennials get a foot on the property ladder.

“There are taxable benefits for making an early withdrawal too.

“For pensioners concerned about their family being hit with a huge tax bill on their pension later down the line, withdrawing money now to gift to relatives could be a smart move.”

While Mr Holmes has acknowledge gifting could be a sensible solution for those who are still hoping to give money away, there are also rules to bear in mind here which relate to Inheritance Tax (IHT).

There is usually no IHT bill to meet on small gifts which are given out of a person’s normal income – such as Christmas and birthday presents.

Britons can give away £3,000 worth of gifts each tax year without these being added to the value of their estate in a process known as the ‘annual exemption’.

Unused annual exemption can be carried forward to the next year, but only for one year.

People will also be able to give wedding or civil ceremony gifts to family members – up to £2,500 for a grandchild, and £5,000 for a child.

Finally, as many gifts of up to £250 per person can be used in the tax year, as long as someone has not used another exemption on the same person. 

Post a Comment