Author: Glenn

If your spouse or civil partner has passed away, you may inherit part of their State Pension, depending on when you reached pension age. Find out what you could claim, from basic pension boosts to deferred benefits and top-ups.

If you reached State Pension age before 6 April 2016, you might be able to inherit some of your spouse or civil partner’s State Pension when they pass away.

To find out what you are entitled to, contact the Pension Service.

If you are not already receiving the full State Pension of £169.50 a week (increasing to £176.45 from 6 April 2025), you may be able to boost your basic State Pension by using their qualifying years.

You might also be able to inherit part of their Additional State Pension or Graduated Retirement Benefit.

If You Reached State Pension Age After 6 April 2016

If you reached State Pension age on or after 6 April 2016, different rules apply to you. You can check what you could inherit based on your spouse’s or civil partner’s National Insurance contributions.

If Your Spouse or Civil Partner Deferred Their State Pension

If your spouse or civil partner deferred their State Pension and built up extra benefits, you could claim this additional amount or receive a lump sum—provided you have not remarried or entered into a new civil partnership.

If they deferred for less than 12 months, you could only receive the extra State Pension, not a lump sum.

You can only claim this extra amount once you have reached your State Pension age.

State Pension Top-Up

If your spouse or civil partner topped up their State Pension between 12 October 2015 and 5 April 2017, you might be able to inherit some or all of the top-up.

Renting out part of your home may affect Capital Gains Tax when you sell. While Private Residence Relief applies, Letting Relief can reduce taxable gains. Learn how PRR, Letting Relief, and exemptions impact your tax liability.

If you have tenants in your home, it is essential to understand the Capital Gains Tax (CGT) implications. Typically, there is no CGT on the sale of a property used as your main residence due to Private Residence Relief (PRR). However, if part of your home has been let out, your entitlement to PRR may be affected.

Homeowners who let out part of their property may not qualify for the full PRR, but they could be eligible for letting relief. Letting relief is available to homeowners who live in their property while renting out a portion of it.

The maximum letting relief you can claim is the lesser of the following:

• £40,000
• The amount of PRR due
• The chargeable gain made on the part of the property let out

Example:

• You rent out a large bedroom to a tenant, making up 10% of your home.
• You sell the property and make a gain of £75,000.
• You qualify for PRR on 90% of the property (£67,500).
• The remaining gain of £7,500 relates to the portion of the home that’s been let.

In this case, the maximum letting relief due is £7,500, which is the lower of:

• £40,000
• £67,500 (the PRR due)
• £7,500 (the gain on the part of the property that’s been let)

As a result, you would not owe any CGT—the £75,000 gain is fully covered by £67,500 in PRR and £7,500 in letting relief.

Note that if you have a lodger who shares living space with you or if your children or parents live with you and pay rent or contribute to housekeeping, you are not considered to be letting out part of your home for tax purposes.

From April 2025, the Capital Gains Tax rate on Business Asset Disposal Relief rises from 10% to 14%, increasing to 18% in 2026. Business owners planning to sell may benefit from acting before these changes take effect.

Currently, Business Asset Disposal Relief (BADR) provides a reduced Capital Gains Tax (CGT) rate of 10% on the sale of a business, shares in a trading company, or an individual's interest in a trading partnership. This relief can lead to significant tax savings for those selling their business.

However, as part of the Autumn Budget 2024 measures, the CGT rate for BADR gains will from 6 April 2025, rise to 14% for disposals made on or after that date. Furthermore, the rate is set to increase again to 18% for disposals made on or after 6 April 2026.

Currently, the lifetime limit for claiming BADR is £1 million, allowing business owners to qualify for the relief multiple times. There have been no changes to this limit in the recent Budget, although the lifetime limit may have been higher for assets sold before 11 March 2020.

In contrast, Investors’ Relief has already undergone changes: the lifetime limit has been reduced from £10 million to £1 million for qualifying disposals made on or after 30 October 2024. The CGT rates for Investors' Relief align with those of BADR.

Given these planned increases, business owners considering an exit strategy may wish to act sooner rather than later, as selling before April 2025 could help lock in the current 10% CGT rate.

A well-structured credit control system is crucial for small businesses to maintain cash flow and reduce the risk of bad debts. Without proper controls, late payments can disrupt operations and put financial strain on the business.

Clear Credit Terms
Setting clear credit terms at the outset ensures customers understand their payment obligations. This includes defining payment deadlines, interest on overdue invoices, and the consequences of non-payment. Offering different terms for new and repeat customers can help mitigate risk.

Creditworthiness Assessment
Before extending credit, assessing a customer’s financial stability is essential. Checking credit reports, trade references, and previous payment history can help determine whether a customer is likely to pay on time. Establishing credit limits based on risk assessments reduces exposure to bad debts.

Efficient Invoicing Process
Timely and accurate invoicing encourages prompt payments. Using electronic invoicing systems ensures invoices reach customers quickly and reduces the risk of disputes. Clearly stating payment terms, due dates, and bank details on invoices makes it easier for customers to process payments without delay.

Proactive Payment Monitoring
Tracking outstanding invoices and following up on late payments is vital for maintaining cash flow. Automated reminders, personal follow-ups, and structured escalation procedures help ensure payments are received on time. A disciplined approach to chasing overdue invoices prevents accounts from falling into arrears.

Flexible Payment Solutions
Offering multiple payment methods, such as direct debit, online payments, and instalment plans, makes it easier for customers to pay on time. Flexibility can improve customer relationships while ensuring steady cash flow.

A well-managed credit control system not only reduces financial risks but also strengthens business stability. By implementing clear policies and proactive follow-ups, small businesses can maintain a healthy cash flow and build long-term customer relationships.

Starting or growing a small business often requires capital, but securing the right funding can be a challenge. Fortunately, there are various funding sources available to entrepreneurs, each with its own benefits and drawbacks.

Personal Savings

Many small business owners start with their own savings. This avoids debt and interest costs but can be risky if the business struggles.

Friends and Family

Borrowing from friends or family is common, but it’s essential to have a clear agreement to prevent misunderstandings.

Bank Loans

Traditional bank loans offer structured repayment terms and can be used for various business needs. However, they often require a strong credit history and a solid business plan.

Government Grants and Schemes

In the UK, grants are available from organisations like Innovate UK and local councils. These don’t need to be repaid, but they are highly competitive and often have strict criteria.

Crowdfunding

Platforms like Kickstarter and Crowdfunder allow businesses to raise money from the public. This is particularly useful for innovative or community-driven projects.

Business Angels

Angel investors provide funding in exchange for equity in the company. They often bring valuable business experience and mentorship alongside capital.

Venture Capital

For high-growth startups, venture capital firms can offer large investments. However, they usually demand significant control and a share of profits.

Invoice Financing and Asset-Based Lending

Businesses can use unpaid invoices or assets as collateral for funding, helping with cash flow issues.

Alternative Lenders

Online lenders and peer-to-peer platforms provide faster, more flexible loans but often at higher interest rates.

Choosing the right funding source depends on your business needs, growth plans, and willingness to take on risk or debt.