Financial experts provide guidance on tax-efficient charitable giving and managing digital assets in a will, whilst UK households face the squeeze amid rising inflation and energy costs.
Sophie Le Breton, a senior associate at the law firm Withers, has provided advice on tax-efficient charitable donations for a 90-year-old reader receiving a substantial compensation payment. Le Breton recommended using Gift Aid to mitigate income tax liabilities and noted that such donations to UK registered charities do not incur UK inheritance tax consequences.
On the topic of digital assets, Henry Lowe, a private client partner at Mercer & Hole, offered expertise on trusts for managing cryptocurrencies left in a will for beneficiaries who are minors.
Another reader facing a complex situation after the death of a co-owner in 2001 sought advice on selling a second home, which has been subject to double council tax due to it being empty. Professional help was recommended to resolve the probate and tax issue.
The Financial Times invites its readers to submit financial queries for guidance from their team of experts.
UK inflation has reached 4.0%, significantly exceeding the Bank of England’s 2% target, according to recent data. The increased cost of living is underscored by the Resolution Foundation’s note on high food and energy costs. The Joseph Rowntree Foundation highlighted that over half of low-income households struggle to afford essentials, with many reducing spending on gifts and certain necessities.
The government has announced payment dates for various financial support schemes in February, with no bank holidays affecting the schedule. Various benefits are due, including a cost of living payment of £299 to be distributed between February 6 and February 22. Cold Weather Payments, Warm Home Discount, and Winter Fuel Payment are available to aid with energy bills.
The Energy Price Cap stands at £1928, but a projected reduction to £1,660 is expected in April, with potential decreases following, as predicted by analysts at Cornwall Insight.
Announced benefit and state pension increases of 6.7% and 8.5% respectively are expected in April 2024. However, the Child Poverty Action Group warns that not raising the benefits cap could lead to real-terms cuts for many.
In January 2024, benefit and pension payments continue to be issued, with a particular £299 cost of living payment scheduled for February to eligible recipients. The Warm Home Discount is being automatically applied to reduce energy bills. There’s an anticipated decline in energy price caps, yet significant financial challenges persist for numerous households.
