Latest news with #AntoniaMedlicott
Daily Mail
02-06-2025
- Business
- Daily Mail
Why getting married abroad could land you with a HUGE bill from the taxman
Couples marrying abroad could be landed with a huge inheritance tax bill if their foreign wedding is not legally binding, a couple has warned. Antonia Medlicott, 49, and Tim Pindar, 44, tied the knot in 2009 in the wedding of their dreams in Spain. The couples families flew out for a 'big Catholic wedding' on the continent, but were unaware that they had 14 days to register their marriage at the town hall, they told The Telegraph. The priest who officiated the wedding had tried to warn the couple that their marriage would be null and void, but the couple did not understand Spanish and the priest did not speak any English. The couple found out their marriage was not legally binding some months later, but decided to ignore it for the next 13 years. However in 2023 the couple were forced to remarry, after discovering they could be set to lose a huge amount of money if one of them passed away. The spousal exemption allows married couples to avoid paying inheritance tax when passing assets to their wife or husband when they die. Unmarried couples however, do not have the same privilege and those who leave assets worth over £325,000 have to pay 40 per cent inheritance tax on the amount over the allowance. Unmarried couples may soon lose out on pension savings too if their partner dies, under new plans by Rachel Reeves. Pension savings can currently be left to an unmarried partner without any inheritance tax being paid, but this is set to end in 2027. Ms Medlicott and her husband discovered that they could be set to lose thousands after speaking to a lawyer about their wills. She said: 'He pointed out that if something happens to either one of us, there's a massive inheritance tax bill coming our way. So we decided we would have to just get on with it.' The couple estimated they would have had an £80,000 inheritance tax bill on their house alone. With potentially more coming from pensions, savings and a business owned by Ms Medlicott. If the worst had happened, the surviving spouse would have been forced to sell their family home to cover the bill. Far from their extravagant Spanish wedding in 2009, the couple opted for a quieter affair in 2023. They described their second wedding as 'bare bones' costing around £1,000 all in - including a bottomless bunch with six friends. Ms Medlicott wore a brown dress and borrowed boots from a friend as the couple finally officially tied the knot at a civil wedding in their local registry office. Claire Trott, head of advice at St James's Place, said: 'Getting married for tax purposes isn't a new concept, particularly in the world of pensions. Many defined benefit schemes have restrictions on who death benefits can be paid to, sometimes depending on when a couple marries. 'My own father married my stepmother just before his defined benefit pension came into payment, because under the scheme rules, death benefits were only payable to the spouse at the date of retirement. Had they married after that point, even after 30 years together, she wouldn't have been entitled to anything.' She said that marriage could soon become an even more valuable planning tool to deal with inheritance tax, particularly with pensions being brought into the scope for the levy. Ms Medlicott said she felt 'resentful' about having to remarry just to save thousands of pounds. She said that marriage 'isn't for everyone' and felt it was 'ridiculous' that a piece of paper could be the difference between huge sums of money for couples.
Telegraph
31-05-2025
- Business
- Telegraph
‘We got married (again) to save £80k from inheritance tax'
When Antonia Medlicott, 49, and her husband Tim Pindar, 44, skipped off into the sunset after their dream big Spanish wedding in 2009, little did they expect to have to do it all over again 14 years later. But facing a huge inheritance tax bill, they were forced to remarry in 2023 after an admin mishap left them legally unmarried. 'We got married in Spain 16 years ago. We had all our family and everyone fly out for this big Catholic wedding,' says Medlicott, a business owner from Stroud, Gloucestershire. 'At the end of the wedding the priest, who didn't speak any English, said something to us which we didn't understand. What he'd said was, you've got 14 days to register your marriage at the town hall or it's null and void. 'A couple of months later we suddenly realised that our marriage was null and void. We just thought 'forget it, we'll leave it'.' Their Catholic wedding vows may have counted in God's eyes, but the taxman didn't see it that way. Unmarried couples who leave assets worth over £325,000 to each other when they die have to pay inheritance tax of 40pc on the amount over the allowance. They don't benefit from the spousal exemption which allows married couples or civil partners to pass unlimited assets to each other completely exempt from inheritance tax. And Rachel Reeves's plans to expand the inheritance tax net to pension wealth will cost many unmarried couples dearly. Pension savings can currently be left to an unmarried partner completely free from inheritance tax, but this exemption will end in April 2027. The Office for Budget Responsibility estimates that by 2030 almost 153,000 estates could see their inheritance tax bills increase under the new rules, according to a recent Freedom of Information request by Interactive Investor. After years of being officially 'unmarried', with two teenagers and their wealth beginning to grow, Medlicott and her husband decided to make things official. 'A couple of years ago we had a lawyer round to come and do our wills. He pointed out that if something happens to either one of us, there's a massive inheritance tax bill coming our way. So we decided we would have to just get on with it.' Medlicott estimates they would have had an £80,000 inheritance tax bill on their house alone. They also have other assets including pensions, savings, investments and a business. The surviving partner would have been forced to sell their family home to pay the bill. They had a 'bare bones' civil wedding at their local registry office – she wore a brown dress and some boots borrowed from a friend. In total, including a bottomless brunch for six local friends, it cost around £1,000. Antonia and Tim are joining the growing trend for couples marrying in midlife or beyond. Office for National Statistics data show more couples are tying the knot later in life – nearly 29,000 over-60s got married in 2022, compared to 19,000 in 2012. And with inheritance tax changes bringing pensions into the inheritance tax net, these figures are expected to rise. Claire Trott, head of advice at St James's Place, says: 'Getting married for tax purposes isn't a new concept, particularly in the world of pensions. Many defined benefit schemes have restrictions on who death benefits can be paid to, sometimes depending on when a couple marries. 'My own father married my stepmother just before his defined benefit pension came into payment, because under the scheme rules, death benefits were only payable to the spouse at the date of retirement. Had they married after that point, even after 30 years together, she wouldn't have been entitled to anything.' She adds: 'With pensions being brought into scope for inheritance tax, marriage could become an even more valuable tax planning tool. Using the spousal exemption, even if it's not the primary reason for getting married, can be highly effective.' Thinking about dying isn't an easy topic, says Medlicott. Her business, Investing Insiders, focuses on building wealth, but it still took time to sort out her own finances. 'It's always on the back burner – what happens if I die – it's a difficult one to get round to.' She adds: 'I felt a little bit resentful having to do it. I think it's ridiculous that you're forced into [getting married] on the back of being able to potentially save thousands of pounds. 'I feel it's ridiculous because marriage isn't for everyone. We've been together for 17 years, we have two children and we've been living together that whole time. How does that piece of paper make our situation any different?'
Wales Online
12-05-2025
- Business
- Wales Online
All the Nationwide customers who will be affected by June bank account changes
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info Nationwide has announced a raft of changes to bank accounts affecting millions of customers from June. Many Nationwide members with savings accounts will see changes from next month impacting their cash. Britain's biggest building society is slashing rates on a number of its savings accounts. READ MORE: The Nationwide customers who will qualify for new £100 bonus payments Get our best money saving tips and hacks by signing up to our newsletter This will hit returns made by customers on their savings. The announcement comes after the Bank of England's cut to the base rate in February and will come as a blow to savers. Rates will be lowered by between 0.1% and 0.25%. Money experts say Nationwide customers may now want to shift their money to another bank offering better interest rates. A number of accounts will be affected including the Reward Single Access ISA, the Reward ISA and Flex ISA. Other regular savings accounts and instant access will also be hit such as the Help to Buy, Continue to Save, Single Access Saver and Limited Access Saver. Antonia Medlicott, of financial education specialists, Investing Insiders, said: 'One thing is certain - savers relying on cash ISAs will experience diminishing returns as providers respond with cuts of their own. "One exception will be those who have locked in fixed rates, which could be a consideration for anyone looking to secure higher returns before these reductions occur." Tom Riley, Nationwide's director of retail products, said: "We have worked hard to limit the impact of the recent rate cut on our savers and have taken the decision to hold off from making changes for as long as possible. "Following these changes, our savings range will remain competitive and continue to pay more than the market average, giving savers every reason to put their money with Nationwide."
Business Mayor
10-05-2025
- Business
- Business Mayor
Five year cash ISA rule every single saver needs to know about
An expert has shared their advice with UK savers who can maximise their money when using Cash ISAs. Investing Insiders' Antonia Medlicott, an advocate for improved financial education, is advising savers to take advantage of the 'five-year' rule that could lead to a healthy boost in interest earnings for Brits. This comes as savers anticipate falling Cash ISA interest rates, meaning that people who place their savings in an ISA will earn less on it. Brits are being encouraged to secure their savings now and one way to do that, the expert explains, is to invest the annual £20,000 savings allowance into stocks and shares ISAs instead. She explains these ISAs have a typically superior performance over the long term. 'Only 21% of the adult population use investment ISAs compared to 40% who use a cash ISA,' she revealed. 'Many people avoid investing because they simply don't feel they have the knowledge and education to approach it.' However, the expert said those who are able to invest for a minimum of five years, adopting a longer-term view, stand to gain a significant amount from doing so. She commented: 'Historically, those who have put their faith in the markets have enjoyed far greater returns than those who used savings accounts instead.' Meanwhile, seasoned Conservative peer and former head of personal investing at Legal and General, Baroness Helena Morrissey, says savers have lost out on more than £6.6billion by not taking advantage of stocks and shares ISAs. Madlicott has urged people to act fast, saying: 'With cash ISAs currently offering up to nearly 5% in interest on deposits and some offering even more with introductory rates, savers can gain peace of mind over the returns they will receive and some great rates. 'However, most of the top-paying accounts offer 'variable' rates, meaning they can go up and down as the Bank of England rate fluctuates. You will generally get easier access to the cash held in these accounts.' There is plenty of speculation about a potential May reduction in rates by the Bank of England, so Madlicott suggests that savers secure higher rates with fixed-rate accounts or long-term ISAs now, before the opportunity may disappear. READ SOURCE
