How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4948
Type Your Tax Question Here...
bigduckontax is online now

I had dinner with an old friend- 78 year old British

This answer was rated:

I had dinner with an old friend- 78 year old British artist suffering from a aggressive form Parkinson's Desease who is married .
This year he sold 33 paintings to a Chinese collector from paintings made across a 50 year career earning in the region of £165,000 .
Apart from spreading this across two years personal tax allowance £11,000?
Paying his wife £7000 care assistance = total approx £36,000 allowance/ plus obvious business expenses his Tax accountant says.
Can you think of any creative loopholes so he should not loose 40% to the taxman
It does not seem fair!
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Always bear in mind Benjamin Franklin's dictum that in life there are but two certainties, death and taxes. You have hit the nail on the head regarding making the disposals over two or more tax years thus maximizing his personal allowance, currently 10.6K. Have a look here for benefits to which he may be entitled: The most obvious being Attendance Allowance and Council Tax Discounts and exemptions. He could pay his wife up to the level of her personal allowance, but, of course, if these exceed GBP 155 a week [a tad over 8K pa] then National Insurance contributions would have to be paid. Averaging could help reduce his bill, but unfortunately only applies over two years. You can read all about it at HMRC Information Sheet HS234 here: So you see a few loopholes do exist, but they could not be described as generous. It looks as though his income is going to have to be squeezed into a very few tax years making 40% tax inevitable. He could reduce his liability by making contributions to a private pension plan and even go back with a SIPP for a few years, but there are limits, currently 40K pa and he would have to ensure that his dependents could inherit his entitlements and use pay and vest [ie pay in and draw pension immediately] to obtain any benefit. I do hope that I have ben able to give you some food for thought. Your local Citizens' Advice Bureau are usually well up to speed in these situations, entitlements and claiming.
bigduckontax and other Tax Specialists are ready to help you
Thank you for your support.