Free advice line 0800 520 0923
Q. No apology for hotel accident
Answer.
My husband and I went on holiday to Norfolk last summer and stayed in a hotel. During our stay, the bathroom cabinet came away from the wall and caused cuts and bruising to my left leg and foot. We complained to the manager who said he would fix it. We didn´t hear anything else and never received an apology. What can we do?
Our claims expert says: Firstly, write a strong letter of complaint to the manager of the hotel. If you don´t receive a satisfactory response, if it was a chain hotel you were staying in, contact their head office (you should be able to find these details on the internet or ask for them from the hotel). If you are still not satisfied, contact a personal injury solicitor who can help you make a claim against the hotel for your wife´s injuries and for loss of enjoyment of your holiday.
Q. Is it possible for someone to steal my electricity?
Answer.
I own a small business and last winter, my electricity bill was £2,800 in arrears. My electricity provider said it was due to increased prices, but I found it hard to believe it could go up this much. Recently a warehouse behind my shop was raided and it was found to be full of cannabis plants. Could they have somehow tapped into my electricity? I am still being chased for the unpaid bill. What can I do?
Our money expert says: You need to explain the circumstances to your electricity provider. They will be able to tell you after checking if your supply was tapped into, but if that was the case, I think you would know by now. It is more likely your large bill was due to your bills being under-estimated previously, which unfortunately coincided with the price hikes at the same time. Make a complaint to your electricity provider about lack of communication and demand an updated statement of how much you still owe, if anything.
Q. Can I still exchange old holiday cash?
Answer.
I was clearing out my store recently and found an old travel bag containing over 60,000 Spanish pesetas. The money dates back to the late 80´s, so will I still be able to exchange it for Sterling?
Our currency expert says: Most pre-euro currencies can still be exchanged for Euros, but only at the central bank in the countries concerned. Peseta notes are no longer legal tender so you would need to exchange them with the central bank in Spain. (The Banco de España). If the bank notes were already withdrawn from circulation before the Euro became Spanish currency, then you will not be able to exchange them. For more information, check out the European banking website at: http://www.ecb.int/euro/exchange.
Q. Can my disabled mother get financial assistance?
Answer.
My disabled mother is 85 years old and has recently had to have a stair-lift fitted at a cost of £2,500. She had to get a bank loan to pay for it. Can she get financial assistance to help towards the cost?
Our benefits expert replies: A disabled person can apply to the local council for a Disabled Facilities Grant if they need to get their property adapted. A maximum of £30,000 can be provided for changes and improvements including ramps, widening doors and stair-lifts. The amount awarded may depend on your mother´s financial situation, income and savings. Unfortunately, rules state that the grant should have been applied for before work began and not afterwards. Retrospective claims are not permitted unless work has begun but not been completed (at the discretion of the local council or housing authority). Check whether your mother is entitled to Attendance Allowance or any extra benefits to help her with the cost of the stair-lift.
Q. Why do my grandkids have to pay tax?
Answer.
My two grandchildren were born and live in Thailand. One is aged 5 and the other just 18 months. I have opened a savings account for both of them in a bank in the UK, but the bank has recently told me that interest cannot be paid tax-free. Why?
Our money expert says: I can only assume the bank was confused about the place of abode, of your two grandchildren. HM Revenue and Customs states that banks are required to deduct tax at 20% from a payment to a person whose usual place of abode is outside the UK. If the bank thought the children´s stay in the US was temporary, this would explain why there was no problem until you tried to open the second account. Some banks and building societies will offer non-UK residents tax free interest on savings and some don´t. You can arrange to have no tax deducted by filling in a R105 form, but not all banks and building societies will accept them. Shop around to find the best banking option for your grandchildren´s savings.
Q. Can I expect any winter fuel allowance?
Answer.
I struggle to cope with fuel bills and the winter fuel allowance helps. Will I get more money for fuel when I turn 80?
Our benefits expert says: The sum you receive depends on how old you were on September 27th, 2009. The maximum payment to any one household is £400. People who live alone and are aged between 60 and 79 will receive £250 and if you live alone and are 80 or over on September 27th, 2009 you will get £400. If you are 60 to 79 and live with another qualifying individual, you get £125 each. If one of you is 80 or more, they receive £275. For more information, call the winter fuel payment helpline on 0845 915 1515 or go to the direct.gov.uk website.
Q. do i have to pay capital gains tax on my shares?
Answer.
I want to get rid of some of my shares, but I am not sure where I stand with capital gains tax. I have built up holdings in several companies, buying large batches of shares when the time has been right, and they were all bought at different prices. How will the capital gains tax be calculated when I come to sell them?
Our shares expert says: After April, 2008, all shares of the same class and of the same company were referred to as a Section 104 holding. The cost of the shares is added together and each share in the holding is classed as having been acquired for the same average price. To get to a figure, add up the total cost of all the shares you bought, and multiply this by the number of shares to be sold. In other words if the total cost of your shares is £1,000 and you intend to sell 50, the answer would be £50,000. Divide that figure by all the shares in the holding. There are exceptions for shares bought and sold on the same day and rules are different for shares bought before March, 1982.
Q. Do we have to pay capital gains tax?
Answer.
My husband and I recently bought a house which our son now rents from us. He is hoping to buy it in two years time. Will we be liable to pay capital gains tax if the house price has risen?
Our tax expert says: This really depends on the increase in the property´s value, but there is likely to be some capital gains tax liability. You have to pay Capital Gains Tax when you sell, give away, exchange or otherwise dispose of an asset or part of an asset. If your property is worth more than when you paid for it you will normally have a chargeable gain, but you can deduct some of the costs of buying, selling and improving your property from the profit. Speak to a solicitor who will explains the ins and outs of capital gains tax for your situation, although there is a single rate of 18% capital gains tax for individuals.
Q. Will I be able to claim married couple´s pension?
Answer.
I retire in December, 2011 and my wife will be 60 in January 2012. Does that mean she can´t claim state pension for a further two years? Will I be able to claim a married couple´s pension and then revert to a single pension?
Our Pensions expert replies: Firstly, the retirement age for women will rise after April, 2010. If your wife is 60 on or between the 1st and 5th January, 2012, her retirement date will be 6th September, 2012 and if it is on or between 6th and 31st January, it will be the 6th November, 2013. Both men and women who have paid the full NI stamp (30 years for women and 44 for men) will now qualify for a full pension in their own right. Voluntary contributions can make up any shortfall. You can only claim married couple´s pension when you are both at state retirement age, which will only be possible in your case in 2013.
Q. No apology for hotel accident
Answer.
My husband and I went on holiday to Norfolk last summer and stayed in a hotel. During our stay, the bathroom cabinet came away from the wall and caused cuts and bruising to my left leg and foot. We complained to the manager who said he would fix it. We didn´t hear anything else and never received an apology. What can we do?
Our claims expert says: Firstly, write a strong letter of complaint to the manager of the hotel. If you don´t receive a satisfactory response, if it was a chain hotel you were staying in, contact their head office (you should be able to find these details on the internet or ask for them from the hotel). If you are still not satisfied, contact a personal injury solicitor who can help you make a claim against the hotel for your wife´s injuries and for loss of enjoyment of your holiday.
Q. Can I still exchange old holiday cash?
Answer.
I was clearing out my store recently and found an old travel bag containing over 60,000 Spanish pesetas. The money dates back to the late 80´s, so will I still be able to exchange it for Sterling?
Our currency expert says: Most pre-euro currencies can still be exchanged for Euros, but only at the central bank in the countries concerned. Peseta notes are no longer legal tender so you would need to exchange them with the central bank in Spain. (The Banco de España).
If the bank notes were already withdrawn from circulation before the Euro became Spanish currency, then you will not be able to exchange them. For more information, check out the European banking website at: www.ecb.int/euro/exchange.
Q. Can my disabled mother get financial assistance?
Answer.
My disabled mother is 85 years old and has recently had to have a stair-lift fitted at a cost of £2,500. She had to get a bank loan to pay for it. Can she get financial assistance to help towards the cost?
Our benefits expert replies: A disabled person can apply to the local council for a Disabled Facilities Grant if they need to get their property adapted. A maximum of £30,000 can be provided for changes and improvements including ramps, widening doors and stair-lifts. The amount awarded may depend on your mother´s financial situation, income and savings. Unfortunately, rules state that the grant should have been applied for before work began and not afterwards. Retrospective claims are not permitted unless work has begun but not been completed (at the discretion of the local council or housing authority). Check whether your mother is entitled to Attendance Allowance or any extra benefits to help her with the cost of the stair-lift.
Q. Is it possible for someone to steal my electricity?
Answer.
I own a small business and last winter, my electricity bill was £2,800 in arrears. My electricity provider said it was due to increased prices, but I found it hard to believe it could go up this much. Recently a warehouse behind my shop was raided and it was found to be full of cannabis plants. Could they have somehow tapped into my electricity? I am still being chased for the unpaid bill. What can I do?
Our money expert says: You need to explain the circumstances to your electricity provider. They will be able to tell you after checking if your supply was tapped into, but if that was the case, I think you would know by now. It is more likely your large bill was due to your bills being under-estimated previously, which unfortunately coincided with the price hikes at the same time. Make a complaint to your electricity provider about lack of communication and demand an updated statement of how much you still owe, if anything.
Q. Why do my grandkids have to pay tax?
Answer.
My two grandchildren were born and live in Thailand. One is aged 5 and the other just 18 months. I have opened a savings account for both of them in a bank in the UK, but the bank has recently told me that interest cannot be paid tax-free. Why?
Our money expert says: I can only assume the bank was confused about the place of abode, of your two grandchildren. HM Revenue and Customs states that banks are required to deduct tax at 20% from a payment to a person whose usual place of abode is outside the UK. If the bank thought the children´s stay in the US was temporary, this would explain why there was no problem until you tried to open the second account. Some banks and building societies will offer non-UK residents tax free interest on savings and some don´t. You can arrange to have no tax deducted by filling in a R105 form, but not all banks and building societies will accept them. Shop around to find the best banking option for your grandchildren´s savings.
Q. Can I expect any winter fuel allowance?
Answer.
I struggle to cope with fuel bills and the winter fuel allowance helps. Will I get more money for fuel when I turn 80?
Our benefits expert says: The sum you receive depends on how old you were on September 27th, 2009. The maximum payment to any one household is £400. People who live alone and are aged between 60 and 79 will receive £250 and if you live alone and are 80 or over on September 27th, 2009 you will get £400. If you are 60 to 79 and live with another qualifying individual, you get £125 each. If one of you is 80 or more, they receive £275. For more information, call the winter fuel payment helpline on 0845 915 1515 or go to the direct.gov.uk website.
Q. Do I have to pay capital gains tax on my shares?
Answer.
I want to get rid of some of my shares, but I am not sure where I stand with capital gains tax. I have built up holdings in several companies, buying large batches of shares when the time has been right, and they were all bought at different prices. How will the capital gains tax be calculated when I come to sell them?
Our shares expert says: After April, 2008, all shares of the same class and of the same company were referred to as a Section 104 holding. The cost of the shares is added together and each share in the holding is classed as having been acquired for the same average price. To get to a figure, add up the total cost of all the shares you bought, and multiply this by the number of shares to be sold. In other words if the total cost of your shares is £1,000 and you intend to sell 50, the answer would be £50,000. Divide that figure by all the shares in the holding. There are exceptions for shares bought and sold on the same day and rules are different for shares bought before March, 1982.
Q. My wife has been conned out of £5,000
Answer.
As my wife is mentally ill, I now have Power of Attorney to deal with her affairs. I have only recently found out that two years ago she issued a cheque for £5,000 from one of our bank accounts to a beneficiary at another bank. I have written to the bank where the cheque was paid in to ask them for the name of the beneficiary but they refuse to give me the information. How can I find out where the money has gone?
Our money expert says: Unfortunately, the cheque was paid before you had Power of Attorney to conduct your wife´s financial affairs, so there is little chance of the receiving bank giving out any confidential information. It is possible your wife was conned out of the £5,000, but it is also possible she didn´t want you to know about the payment. As you have no evidence your wife was forced to pay the money or was tricked into paying it, the bank was well within their rights to refuse to pass on the name of the beneficiary.
Q. How can I solve my pension problems?
Answer.
I have just retired and am in a final-salary scheme. I have been offered either a pension of £28,000 or a lump sum of £125,000, plus a pension of £18,500. I have savings of over 100,000 and no debts, so what would your advice be?
Our Pensions expert says: On full pension you may escape higher rate tax, but you would not be eligible for Age Related Allowance. It depends really on your attitude to risk and your family circumstances. Ask your financial advisor for a cash flow forecast so you can determine the best course of action for you. The best option may also depend on the taxable income from your other assets, but at the age of 65 you will probably be paying a higher tax rate on at least a proportion of this. If you take the full pension you can´t then change this and with a lump sum you could invest it to avoid paying a higher tax rate.
Q. Will I be able to claim married couple´s pension?
Answer.
I retire in December, 2011 and my wife will be 60 in January 2012. Does that mean she can´t claim state pension for a further two years? Will I be able to claim a married couple´s pension and then revert to a single pension?
Our Pensions expert replies: Firstly, the retirement age for women will rise after April, 2010. If your wife is 60 on or between the 1st and 5th January, 2012, her retirement date will be 6th September, 2012 and if it is on or between 6th and 31st January, it will be the 6th November, 2013. Both men and women who have paid the full NI stamp (30 years for women and 44 for men) will now qualify for a full pension in their own right. Voluntary contributions can make up any shortfall. You can only claim married couple´s pension when you are both at state retirement age, which will only be possible in your case in 2013.
Q. Can I withdraw savings from my pension?
Answer.
I have been told that pensions or AVCs, which were frozen with less than £5,000, can be released to you. Is this correct?
John Simpson, Carlisle
Our pensions expert says: The whole pension can only be paid as cash under the rules which relate to small funds, which is known as triviality. Rules state that the pension holder must be aged between 60 and 75, the total of the pension schemes must not exceed £17,500, the value of a money purchase pension is the value of the pension pot, the value of a pension from a defined benefit scheme is worked out by multiplying the pension by 20 if it is not yet being paid, or by 25 if it is in payment. If, for example you have a small pension owed to you of £500 per year, its value for triviality purposes would be £10,000. Only 25% of the cash-in is tax free and the balance is taxable. If there are no other pensions and the value of this one is £5,000, then the whole lot can be taken as cash provided the other conditions are met.
Q. What happens to premium bonds after I die
Answer.
What would happen to my premium bonds if I die? Can I leave them to someone in my will?
Barry Johnson, Surrey
Our money expert says: You cannot pass on premium bonds. If a premium bond holder dies, their bonds can be included in each premium bond draw for up to a year after their death, but bonds are not transferable at any time. After the death of a registered bond holder, the value of the bonds will form part of the holder´s estate, which is stated in the terms and conditions of the premium bond leaflet.
Q. Holiday travel insurance
Answer.
My husband and I have booked a holiday in a month´s time to celebrate a special birthday. Our children are going on a separate trip with relatives. Will our annual travel insurance cover all of us, even though we will be in different countries?
Jenny Wells, Dorset
Our holiday insurance expert replies: Family travel insurance policies cover everyone named on the policy when travelling together. Adults named on the policy would normally be covered when travelling individually or as a couple, and some more comprehensive packages will cover named children independently, if they are travelling with a responsible adult. Check with your insurer as restrictions vary or check out http://www.staysure.co.uk.
Q. Can money bring happiness?
Answer.
I have always wanted to retire early, and often dream about winning the lottery or receiving an unexpected windfall. Can money really bring happiness and satisfaction?
June Wilson, Kent
Our money expert says: Most of us dream of having more money, winning the lottery or receiving an unexpected windfall, but money alone can´t buy you happiness. Money obviously allows us to do the things we have always dreamt of but there are only so many holidays you can go on and so much champagne you can drink, before the boredom factor sets in. Also, a lot of cash is not much use to you if you suffer ill health, apart from splashing out on the family of course. There is a big difference between being seriously rich and having enough to get by, pay your bills and not have to worry about the rent/mortgage each month. Money can´t actually buy happiness unless you are poor to begin with. For the poorest countries, raising people´s incomes has a positive impact on their lives, and increases their levels of happiness. But as countries develop, the rule of law, good health, strong relationships and other quality of life factors matter more than money. Even if you are lucky enough to win the lottery, good health, friends and family and living in a law abiding society are paramount if you want to live a happy life.
Q. What rules apply to ISA transfers?
Answer.
A couple of months ago I transferred my cash ISA from First Direct to Intelligent Finance, as the interest rate was much higher. Intelligent Finance has now cut its rate, so can I move the money back to First Direct without any penalties?
M. Foster, Workington
Our savings expert replies: A number of changes have been introduced since ISAs were first bought out, but the rules surrounding them can be complicated. The Treasury don´t want to see tax-free savings abused, plus the banks have their own rules. Having said that, savers are allowed to transfer between providers as often as they like, but that doesn´t necessarily mean that banks and building societies will accept transfers. Some will only accept large sum transfers.
Q. Will I get bereavement benefit?
Answer.
Is bereavement benefit age-dependant, and does it depend on the amount of National Insurance Contributions paid by my husband?
Ellen Simpson, Greater Manchester
Our benefits expert replies: Bereavement Allowance is a taxable benefit which is paid weekly for up to a year after the death of a husband, wife or civil partner. To claim this benefit you must be aged at least 45, but under 60 to receive it. The lowest weekly rate (age 45) is £28.58 per week, rising to a maximum of £95.55 at age 55 until pension age. For more information, contact the Department for Work and Pensions.
Q. Unreasonable request from the taxman
Answer.
I am currently undergoing a tax inquiry and Revenue and Customs have asked me to provide property details for a house I bought 20 years ago as a buy-to-let investment. I no longer have the records of it, so is this a reasonable request for them to make?
JT, Tewkesbury
Our tax expert replies: For an individual who runs a business, tax records must be kept for five years from January 31st, following the end of the tax year. This period can be extended if there is a tax inquiry, and the records must be kept until that inquiry is over. For individuals not in business the tax records must be kept for 12 months, from January 31st, following the end of the tax year. Revenue and Customs can, of course, ask for details dating back 20 years but they can have no complaints if you don´t have it. The Revenue, in this case, should accept a fair estimate of the purchase price of the property.
Q. Is my cheque safe?
Answer.
I lent £1,500 to the company I worked for, just 10 days before it went into administration. The company paid me back with a cheque which I banked, just two days before the administrators were called in. The cheque has cleared so is there any way it can now be recalled?
A. Jackson, Mansfield
Our money expert replies: Before December, 2007, it was possible for a cheque to bounce months after it had been paid into an account. However, the Office of Fair Trading and the banking organisation responsible for clearing payments introduced a 2-4-6 rule, which made the system clearer and removed uncertainty. The agreement set maximum time limits of two, four and six working days for stages of cheque clearing, after a cheque is paid into a bank account.
The maximum timescales relate to: when customers will start to earn interest on a cheque paid into their account (2 days) and when it will be available to withdraw (4 days). After paying in a cheque, account holders can now be sure that after 6 days the money is definitely theirs, even if the cheque bounces after that time. In other words, the money can no longer be taken back from you.
Q. Virgin on the ridiculous
Answer.
My wife and I booked two Virgin balloon flights, which cost £280.00 in 2008. We couldn´t take the flights in summer, due to bad weather, and were issued with two vouchers for 2009. Twice we tried to book flights, which were later cancelled by the company. When we tried to re-book we were told the vouchers were out of date and no longer valid. In order to take the flights we would have to pay again. Why are we being penalised because through bad weather and limited flight availability we have not been able to take the flights?
J.B, Devon
Our company expert replies: Hot air ballooning obviously depends on the weather, and Virgin Balloons do offer an option of insurance to customers, which gives a refund if trips are cancelled five or more times due to adverse weather conditions. Your vouchers have been extended twice so although the company may extend them again to show good will, they are not legally bound to do so.
