Questions Of Cash: You're a smarter investor if you can close Alliance & Leicester's accounts
Saturday 16 August 2008
Q. I have written to Alliance & Leicester three times with no reply. My son had a "young worker" account that A&L changed to a premier current account, despite his already having one. My son requested that one of these accounts be closed and cut up his card. In January, A&L told him his balance was down to 1p on the account he had closed and that he needed to pay in money. But he was in hospital, after a nervous breakdown. I took him to the bank at the first opportunity. The cashier said that she could not close the account without the card, but if he transferred £5 into the account, there would be no more bank charges. Yet, though he paid in £5, he has been charged another £25. These charges are very unfair on someone who is ill and has been an A&L customer for many years. CL, Nottingham.
A. Alliance & Leicester says it has no record of your son trying to close one of his premier current accounts. A bank spokeswoman says: "Account closures can only be carried out at head office, so if a request was made at a branch, the request would have been forwarded to the relevant area in head office. If this was the case, as we have no record of the request we can only assume that it was lost somewhere between the branch and head office, for which we apologise." The failure to close the account led to underfunding fees, putting the account into an unauthorised overdraft, triggering the £25 charge. A&L says it did close your son's duplicate account when you wrote to the bank. It has credited him with £30 as a gesture of goodwill.
Q. I have a holiday home in Italy, which I rent out. I've been told that I won't have to pay tax in Italy as long as the income is less than €7,500 a year. In the last tax year, it was very close to this threshold. I receive the rent in sterling, so the amount of income in euros depends on the exchange rate, which has been constantly changing. What exchange rate should I use? Do I have to pay tax in the UK as well? Can I choose where to pay tax? CP, London.
A. Antonio Risorto, senior tax manager at accountants Grant Thornton, says: "Assuming the owner of the property is UK resident and domiciled, the owner would be liable to UK income tax on their worldwide income. For the purposes of Italian tax, non-resident taxpayers are liable to IRPEF – personal income tax – and must file a tax return for Italian-source income exceeding €185.92. The €7,500 relates to a tax credit that is not available for offset against rental income. Double tax relief is available to prevent individuals being taxed twice on the same income. An individual cannot choose where to pay their tax, other than by moving to another country. Taxing rights are determined by the type of income and the "situs" (location) of the asset. Buy-to-let income is liable to Italian income tax first. HM Revenue and Customs' strict position is that they require exchange rates to be taken for the date the income arises; in practice, they accept a reasonable approach (if it is consistent). For rental income received over the course of a year, the average exchange rate at www.hmrc.gov.uk appears to be reasonable. Local tax advice should be sought."
Q. I recently took power of attorney over my mother's financial affairs. She is entitled to a payment for some shares she holds. How do I obtain this on her behalf? SH, Warwickshire.
A. Stephen Pallister, tax and trust partner at the solicitors Charles Russell, says: "If you have an enduring power of attorney (EPA) and she has lost mental capacity, you must register it with the Office of the Public Guardian (www.publicguardian.gov.uk) before you can use it. If your mother has not lost capacity, the EPA may be worded so that you can use it as an ordinary power of attorney – you can use that straight away, if your mother has not lost capacity. Alternatively, since 1 October 2007 she may have made a lasting power of attorney (relating to "property and affairs"), the EPA replacement. This would have to be registered with the OPG before you could use it."
Questions of Cash cannot give individual advice. Please do not send original documents. Write to: Questions of Cash, The Independent, 191 Marsh Wall, London E14 9RS; email@example.com.
Money roundup video: It's getting harder to sort out a mortgage
10 tips for taking out a personal loan
Women born in 1950s facing severe financial hardship over pensions could have fates changed by Ros Altmann - should she choose to help
Is it really that bad in the bond market?
Simon Read: You're guilty until proven innocent when HMRC sends in the tax credit detectives
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 4 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...
Day In a Page
In the pretty market town of Bungay, this grade II-listed Mill House is arranged over four floors, offering four bedrooms and three reception areas.
This four-bedroom Edwardian home offers a combination of original features and contemporary design after a renovation by the current owners.
This four-bedroom home offers a vaulted ceiling in a breakfast room that's ideal for summer entertaining with doors that open to the patio and garden.
On the market for the first time in more than 50 years, this six-bedroom home is a project with vast potential - spread over three floors of living space.
This five-bedroom home comes with a range of outbuildings including a large barn which could be converted into a self-contained granny-flat or rental.
Surrounded by rolling countryside, this four-bedroom barn conversion comes with a self-contained, one-bedroom annexe that could serve as an office or a holiday let.
Located near Harrogate town centre, this five-bedroom Victorian terrace is arranged over three storeys while a current study serves as an optional sixth bedroom.
A ground-floor flat in a country house, located a mile from Sway; this two-bedroom home would make an ideal weekend retreat on the edge of the New Forest.
On a popular residential lane in Caterham on the Hill, this four-bedroom family home offers a secluded garden and a convenient location for local schools and public transport.
Just a short walk from Westerham green, this three-bedroom cottage has a light kitchen with exposed brickwork and double doors that lead to a south-facing garden.
In a prime spot opposite the River Thames, this one-bedroom flat has an 18sq ft reception room with glass doors that open out to a private terrace.
Set in the hills above Llanwrda Village, west Wales, this 18th-century three-bedroom farmhouse has holiday-let potential from a separate barn conversion and annexe.
This charming end-of-terrace townhouse is arranged over three floors, with two double bedrooms and a private courtyard garden located at the rear of the property.
Located in the University area, this semi-detached five-bedroom home is arranged over three floors - there's even a rear garden and off-road parking too.
Only a few minutes' drive from the charming town of Marlow, this two-bedroom home sits on the private riverside estate of Harleyford.
This detached four-bedroom home in Middleyard is arranged over two floors, with features that include a wood-burning stove and bespoke oak staircase.
In a row of eight detached Georgian residences, this five-bedroom home offers views of The Sound, Mount Edgcumbe and Cornwall from its impressive veranda and full-length balcony.
If you love cooking for friends this two-bedroom flat - complete with views of the iconic Battersea Power Station and an open-plan kitchen/dining area - will go down a treat.
Located above Grasmere village, this five-bedroom home is arranged over three floors and offers countryside views across Grasmere Lake towards Silver Howe.
Surrounded by the Western fells, this five-bedroom Georgian home retains many original features including panel-plastered ceilings, sash windows and fireplaces.
This six-bedroom home is set amongst three acres of grounds. Currently a large family home, Clift Hill has potential to make a B&B, subject to change of use permissions.
A former period coach house, Glebe Farm Stable is now a three-bedroom cottage with a double car barn, office, kennels and an outbuilding that's currently used as a gym.
Surrounded by woodland, this five-bedroom manor house has plenty of outdoor storage space in the form of three converted loose boxes, two smaller outhouses and a woodstore.
This four-bedroom detached home comes with a double carport, useful workshop, garden and two walkways that offer views of the adjacent countryside.
With space for an equestrian business, a greenhouse for growing your own veg, a wine store and a gym; this five-bedroom home has all the ingredients for a country retreat.
The decked roof terrace of this two-bedroom flat is perfect for summer drinks while large windows and ample storage space make for a light and spacious interior.
Set sail for this four-bedroom farmhouse in Cowes. With five acres of land and an indoor pool, this home oozes character. There is even potential to let a one-bedroom annexe.
Surrounded by approximately 15 acres of grounds, this six-bedroom grade II-listed home has been extensively refurbished yet retains many period features.
This four-bedroom home comes with a two-bedroom cottage and commercial office, with planning to extend, in a stunning courtyard setting.
In a pretty Norfolk village, this four-bedroom family home is surrounded by landscaped gardens, with even a self-contained annex for guests.
A few miles from the seaside at Perranporth, this four-bedroom farmhouse sits amongst nine acres of idyllic grounds - including a lake and two barns used as holiday lets.
This five-bedroom home is arranged over three floors of a converted Victorian hospital, offering spectacular views of the Pentland Hills - only three miles from the city centre.
This four-bedroom detached home comes with grounds that span to approximately 2.5 acres, as well as two large patio areas and a double garage.
This four-bedroom cottage is a Grade II-listed town house, well-located for the thriving market town of Nailsworth.
A four-bedroom apartment on the ground floor of a stunning period property in North Yorkshire, with two kitchens and a large south-west facing garden.
This high-spec two-bedroom home is part of a smart collection of new flats at Beaufort Park and has a large decked balcony that's perfect for summer drinks.
Capitalise on the fabulous views of Trevone Bay by taking two homes and creating one spacious boutique B&B. Just a cliff-top walk from Padstow.
Overlooking a golf course, this six-bedroom Edwardian detached home spans four storeys and retains many period features including the original, operational servants' bells...
On the edge of the city, this six-bedroom home comes with an outdoor swimming pool and a large garage block that has annexe potential.
In a Grade II-listed manor just outside of Bath, this three-bedroom home is arranged on two floors with a skylight in a vaulted roof line.
Open the living room's bi-fold wooden doors to reveal a retro-style kitchen, and a conservatory leading to a paved garden at this three-bedroom home.
A Grade II-listed, four-bedroom home, in a charming Somerset village, with a two-storey studio that could be converted into a holiday cottage
A modern four-bedroom Victorian home, within walking distance to the high street
A luxury apartment in the Gothic mansion of Wyfold Court in Kingwood, offers six bedrooms spread over three floors and a turret
This school conversion, near Stockwell Tube, oozes New York loft style. The one-bedroom flat features double height ceilings and exposed brick work
This six-bedroom Georgian home is on three floors with open fireplaces, a two-oven Aga, an annexe, and cottage gardens with outbuildings and a car barn
High Crest House covers an impressive 9384sq ft, with almost three acres of grounds including a tennis court and summer house enclosed by electric gates
A six-bedroom farmhouse with separate accommodation in converted stables. Situated in the village of Church Aston, within walking distance to the market town
A two-bedroom flat with under-heated walnut floors and bespoke built-in storage. The Tube and Clapham Common are a short stroll away
A refurbished seven-bedroom townhouse with staff quarters, cinema room, superb gym, steam room and plunge pool