The tax trap awaiting Millionaire's Row – and how to beat it

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 14 September 2018

⏱️ 48 minutes

🔗️ Recording | iTunes | RSS

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Summary

What do you do about the looming inheritance tax threat when you live with elderly parents along with your own child and the home is worth nearly £10million – and you want to continue living there?

It sounds like a champagne problem, but IHT does hit ordinary people – including one reader who admits to being relatively cash poor. How can they make sure they aren't turfed out due to inheritance tax?

This is Money editor Simon Lambert, assistant editor Lee Boyce and host Georgie Frost discuss the IHT issue.

Elsewhere, we discuss the big responsibility of being a trustee with a pot of cash to invest for a younger sibling and why it is never too late to start sorting your pension.

With a number of big firms suffering hacks, including British Airways, we discuss what people can do if they are a victim and how to prevent becoming one.

And finally, we talk about electric cars as sales continue to rise with the UK pushing for an entirely zero-emissions road network by 2040.

Transcript

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0:00.0	Welcome to This Is Money Podcast in partnership with LSNI. I'm your host, Georgie Frost,
0:06.8	and alongside editor Simon Lambert and I today is Assistant Editor Lee Boyce.
0:11.4	And coming up, we're lacing up our Nike Air Mags, jumping in the DeLorean and going back to the future.
0:17.9	We're looking at your oldest self, encourage you to save more. Should you switch your motor
0:22.4	to an electric now? Can
0:24.7	we ever keep pace with the hackers
0:26.4	and get out the mini violins?
0:29.0	We talk inheritance tax
0:30.7	problems of the biggest winners
0:32.4	from the property price boom. Don't forget
0:34.7	you can stay up to date with all the latest breaking money
0:36.5	news. Just go to this ismoney.com.uk or download the app.
0:41.6	This is money brought to you in partnership with NS and I where safer savings set you free.
0:49.1	But first, rather a champagne problem, but one that could affect ordinary people.
0:53.2	Now, you have a reader, Simon,
0:54.8	living with and raising his son in his childhood home, which I imagine there's quite a few people
0:59.2	doing that. Now, his parents in their 70s also live there as well. But the issue here is that the
1:05.2	property was bought in a very central part of London back in the 70s and would now be worth many millions of pounds.
1:13.6	So how can they make sure that they aren't turfed out due to inheritance tax?
1:17.6	I think is essentially the nub of the issue rather than the fact they're now in a multi-million pound property,
1:22.6	which I imagine most people won't find themselves in that particular situation,
1:25.6	but may find themselves in a situation
	...

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