tha lifestyle
| Business & Finance
Hi, I own two properties,
one is a three bedroom
house which is my main
residence and other is a one
bed flat. I was made redundant
last month so I am going to sell
my main residence and move
into the flat. Please can you tell
me whether I have to pay any
tax on gain?
?
If you sell your main
residence, and if it has
been your main residence
during the entire period of
ownership, then you do not
pay any tax on gain as it will be
covered by “private residence
relief”.
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Tax tip: The day you move
to your flat, and if you
make it your main residence, all
period then onwards would be
covered by PRR relief.
CAPITAL GAINS TAX
My name is Sathees, and
this year I made more
than 12,000 gain on buying
and selling shares and can you
please advise me how can I
avoid paying tax?
?
For 2013/14 tax year the
A first £10,900 gains made
on selling shares is exempt from
tax and any gain made above
this limit is taxable.
Tax tip: If you buy and sell
shares based on “Financial
spread bet trading
method” instead of the normal
“certificated method” then any
gain you make on buy and sell
shares is fully exempt from tax
TAX ON BANK INTEREST
Q: My name is Kumar
and I am a higher rate tax
payer and paying 40%
tax on interest receive from my
bank. Please can you advise me
whether is it possible to transfer
money to my son who is 12
?
08
Ragu Dharmaratnam
Head of finance for a UK group Firm and
a financial journalist
e: [email protected]
years old and thereby saving
tax on interest? Currently I
am getting 3% interest on my
savings account
Income earned from gifts
from parents is exempt
if less than £100 per
annum. Otherwise the income is
taxable as that of the parents.
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Tax tip: You may open a
savings account under your
son’s name (children account)
and transfer £3300 , thereby
your son will get £99 interest
per year which is covered by the
£100 exemption limit.
CASH GIFT
Hello, My father is a
UK national now lives
in Canada, and he is
sending me £30,000 to the UK
to put a deposit towards buying
a property. Do I have to pay any
tax on the gift?
?
Cash gifts are free of
tax in the hands of the
recipient, this means you
do not pay any tax. You father
is a UK national then this gift
will be regarded as “potentially
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MONEY
DOCTOR
PROPERTY TAX
exempt transfer” (PET) for
inheritance tax purposes based
on seven year rule. Please
check with Canadian tax
authorities for any local tax.
Tax tip: Any gifts you
make will be exempt from
Inheritance tax as long as
you live for seven years after
making the gift.
EMPLOYMENT
My name is Jaffer and I
am 22 years old. Recently
I went for a job interview at a
local cash and carry shop and I
was offered £6 per hour hour
doing 35 hours a week. I was
told by my friend that I should
be offered a minimum wage by
law. Is this true please advise?
?
Under the “National
Minimum Wage” (NMW)
legislation from October 2013 ,
you should be offered at least
£6.31 for hour . You have the
right to ask your employer to
match this figure and it is illegal
for them to offer £6,
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