Trump treatens to veto defense bill over Confederate base name changes

Donald Trump treatens to veto annual defense bill unless Congress abandons bipartisan demand to rename military bases that have Confederate names By Nikki Schwab, Senior...

    Lewis Hamilton loses three-year-legal battle to ban luxury watchmaker’s ‘Hamilton’ brand

    Lewis Hamilton loses three-year-legal battle to ban luxury watchmaker's 'Hamilton' brand name that firm has been using since 1892 The Formula One world champion took...

    Greg Norman, 65, sends fans wild as they notice a VERY naughty detail in his shirtless beach photo

    Golf legend Greg Norman, 65, sends fans wild as they notice a VERY naughty detail in his shirtless beach photo - so did you...

    Champagne flutes and fine china from British Airways first-class go under the hammer

    Flying off the shelves: Champagne flutes and fine china from British Airways first-class go under the hammer amid £5.4billion losses British Airways will auction off...

    Five tax breaks that EVERY grandparent must know

    Several ways grandparents can help other family members financially – and improve their own finances

    It has been a tough year for grandparents, with lockdowns and social distancing keeping millions away from their loved ones. 

    While many have been kept from offering the childcare and social support they normally would provide to grown-up sons and daughters and other family members, there are several ways grandparents can help financially – and improve their own finances. 

    1. Boost state pension 

    If you look after your grandchildren, you could be eligible for a boost to your pension, worth around £250 a year. 

    Self help: There are several ways grandparents can help financially – and improve their own finances

    When you care for grandchildren while their parents work, you earn credits towards your National Insurance record. You may even be eligible if you have not been able to see your grandchildren in person due to Covid restrictions. If you provided care via the phone or video, that may also count. The so-called ‘specified adult childcare credits’ can only be claimed by someone who is not working, but below state pension age. 

    2. Cut inheritance tax 

    An often-overlooked inheritance tax exemption can allow grandparents to chip in towards their grandchild’s education costs without risking a tax liability. 

    Gifts of any amount are free from inheritance tax if made regularly and out of income rather than savings. 

    Carla Morris, financial planner at wealth manager Brewin Dolphin, says: ‘It is important you keep good records by making a note of what you gave, who you gave it to, when you gave it and how much.’ 

    3. No tax on interest

    If a child gets more than £100 of annual interest from money given to them by a parent, the parent may have to pay tax on it. However, there is no tax to pay if the money was given by a grandparent.

    In practice, parents only have to pay tax if they gift a particularly large sum to a child. To be liable for tax, they would have to exceed their tax-free personal savings allowance of £1,000 a year – £500 for higher rate taxpayers. 

    Richard Jameson, a partner at accountancy firm Saffery Champness, says grandparents can also pay into a grandchild’s Junior Isa, although it must be opened by a parent or guardian. Current Jisa rules allow £9,000 a year to be squirrelled away in a tax-free account – with the proceeds being able to be withdrawn from age 18. 

    Grandparents can also buy Premium Bonds on behalf of grandchildren aged under 16. They can invest from £25 to £50,000. 

    4. Granny flat bonus 

    Homes with a self-contained annexe or granny flat used to be liable for a higher rate of stamp duty. That’s because they were treated as two dwellings, and anyone who buys a second home has to pay extra stamp duty. But two years ago, the Government realised this was unfair and updated the rules so a property with a granny flat is treated as one dwelling. 

    The only conditions are that the main part of the house is worth at least two-thirds of the value of the whole property and the granny flat is situated in the grounds of the main property.

    5. Wedded bliss on gifts 

    If you make large gifts to anyone except your spouse, they may incur inheritance tax if you do not survive for seven years after making them. 

    But there are a few exceptions. Anyone can pass £3,000 worth of gifts each tax year without risking an inheritance tax bill. In addition, anyone can gift up to £1,000 per person as a wedding or civil ceremony gift. 

    The allowance is greater for grandparents. If a grandchild is getting married, grandparents can make gifts of up to £2,500.


    Grandparents can also help turn their grandchildren into pension millionaires. 

    Pensions are one of the most lucrative ways of saving for a grandchild’s future. All pension contributions are topped up by the taxman and have decades to grow. In fact, if a grandparent were to pay just £40 a month into a pension from the day their grandchild was born until they hit 18, they could have built up a pot worth nearly £100,000 when the grandchild reaches retirement age. For every £40 paid by a grandparent, the tax- man tops up by another £10. 

    Increase the contributions to £240 a month and the grandchild could be a pension millionaire by their 43rd birthday, according to figures from Brewin Dolphin. That is assuming the pension pot grows by eight per cent a year due to stock market returns. 

    However, the child would not be able to access the money until the age of 57 and they are likely to have many other financial pressures in the interim – such as buying their first home.



    Please enter your comment!
    Please enter your name here

    Latest Posts

    ‘Tony Meatballs’ among 15 Philadelphia and New Jersey ‘mobsters’ charged in racketeering case

    'Tony Meatballs' and 'Joey Electric' are among 15 members of the Philadelphia and New Jersey mob indicted on  racketeering and drug trafficking charges Federal prosecutors...

    Pennsylvania limits alcohol sales night before Thanksgiving

    Pennsylvania bans restaurants and bars from serving alcohol after 5pm the night before Thanksgiving to prevent 'large crowds' from gathering as health officials warn...

    I’m A Celebrity 2020: AJ Pritchard and Shane Richie have a tiff over dirty PANS

    I'm A Celebrity 2020 'This is where people get p**** with each other!': AJ Pritchard and Shane Richie have a tiff over dirty PANS......