The plan was to stay alive for five years. Granted, that was very much against the odds. But I bought into the concept of positive attitude keeps the bastard at bay. And chose to double the number of months afatinib would keep me alive.
The drugs have helped a bit. They’ve got me over the year mark. But, miracles excused, I know I won’t see out 2018.
The positive attitude moreorless remains. But it’s about bring happy rather than living as long as possible. And I am happy.
The inheritance tax plan needs me to get to April 2019. Otherwise my kids will get a rather nasty reduction to their payments out of my pension pot. It’s a rather nasty tax and I don’t really see the point of it. I’ve not spent the last year topping up my pension to create new tax breaks. So why tax the pot I created by changing my final salary pension into a cash sum?
Still, there is a small way to fight back. I’ve had the biggest earned income of my life this year thanks to a generous redundancy payment. And paid a lot of income tax on it. Gifts out of income are exempt from inheritance tax. So as long as I give money away this tax year I can reduce the value of my estate and the tax due without falling under the seven year rule that applies to gifts.
And by not using my pension pot I leave the door open for an argument with the Capital Taxes Office that because I didn’t get any new tax reliefs when I changed my pension arrangements IHT shouldnt apply. Granted, it’s a long shot, but Mrs Tenacious is probably up for that battle when I’m gone!
So I’ve dished out a few gifts yesterday. Sorry, the door is now shut. No more takers! And for every £5,000 I’ve given away now I’ve stopped it being worth just £3,000 after IHT when I’m gone. A legal tax avoidance. It’s permitted by a recent Finance Act. And it helps me deliver my initial instinct that I had on my cancer diagnosis. Get as much money to the kids as possible!
They won’t have to wait until they’re sixty to inherit. A problem their mates might have. They can benefit at a relatively young age and, used wisely, set themselves up with a big house deposit, cheaper mortgage and nicer home. Assuming that’s what they want to do with it.
Here’s an appropriately titled Hothouse Flowers song. I don’t know when they took on the tramp look, but the music’s still good.