December 2019 Newsletter : Cylchlythyr Misol Rhagfyr 2019

The UK financial regulator, the FCA states that UK customers are overpaying significantly for their home and car insurance.    Shop around when you renew your insurance policies and utility tariffs using comparison websites and look at companies which advertise directly such as Direct Line and Aviva. 

Banks including HSBC are hugely increasing overdraft rates, up to 39.9% per annum.  If someone has an average overdraft of £2,500 this will cost them £1,000 a year in interest!  Use short term loans of 1-3 years at very low rates if finances are tight rather than rely on an overdraft.

Many car showrooms are nearly empty just before Christmas as individuals concentrate on the festive season.  This can be a very good time to negotiate a big discount on cars as dealers struggle to meet quarterly targets.

Review your wills regularly to ensure your assets are distributed according to your wishes.  Badly drafted wills (and they do exist) can cause unnecessary distress emotionally and financially.

Ask Huw: I am married and own 3 rental properties in my own name.  I wish to sell them and plan for Capital Gains tax.  Any thoughts?

• An individual has a Capital Gains Tax allowance of £12,000 per tax year.
• Transfer the properties to joint names with your wife. You will each be entitled to an allowance of £12,000, £24,000 between you.
• Sell the 3 properties in 3 different tax years thereby receiving 3 lots of Capital Gains Tax allowances of £24,000.
• If you wish to gift some of the proceeds to your adult children they could also be entitled to Capital gains Tax allowances.
• Plan ahead carefully when undertaking any major financial transaction.

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