I was one of those mad optimists who foolishly suggested at the start of the year – and even repeated it around the half- way mark – that the FTSE 100 index would hit 5,000 by New Year’s Eve It was then standing at 3,940. It has been a reasonable year for the no pain, no gain portfolio. It started 2003 just a few thousand pounds in the black, plunged into the red in the dark days ahead of the Iraq war but joined in the subsequent recovery and is again enjoying a £30,000-plus profit. Credit will be available against your UK tax liability for any local taxes paid.” You should take advice on the tax implications of selling your property. Establishing the amount of local tax and CGT payable and may be affected by indexation relief prior to 1998, taper relief since then and other complications.If you have questions about personal finance, write to Questions of Cash, ‘The Independent’, 191 Marsh Wall, London E14 9RS, or e-mail cash independent.co.uk We regret that we can reply only to letters published here. Please send copies, not originals, as we cannot return material.. KH, London

Q I have been awarded arrears of disability living allowances part of which I would like to invest in a savings account with an ethical bank.

My IFA has provided details of Triodos Bank, which is Dutch and seems young, but I am unclear about the deposit guarantee arrangements. I don’t know whether to use Triodos or the Co-operative Bank, which is also ethical. KH, London
Triodos is a respected ethical bank, founded in the Netherlands in 1980 and has operated in the UK since 1995. Both Triodos and the Co-op Bank adopt ethical policies, but differently.The Co-op operates negative screening to avoid using customers’ deposits for unethical purposes.

Triodos adopts positive ethical criteria for how customers’ deposits are used. Savings rates vary according to the type of Triodos account used, and may not always be competitive.Deposits are protected by the Dutch collective guarantee scheme, which is similar to that of the UK deposit protection scheme.Q We are thinking of selling our property in Spain after 23 years’ ownership. Can we keep the funds in an account in Spain, drawing from it by debit card anywhere in the world? Or can the money be placed in an offshore account? ID, NewcastleIf you are UK residents you will have to declare capital gains on the property to the British Inland Revenue and these will probably be subject to capital gains tax. If you do this, it does not matter where you deposit the funds.Glenn Martin, of the accountant Moore Stephens, says: “You could deposit the proceeds in a Spanish or other offshore bank account, but interest credited must be included in your annual UK tax return(s), assuming you are resident and domiciled in the UK. Domicile can have an impact on inheritance tax.If you would like to be given a financial health check-up, write to: Wealth Check, ‘The Independent’, 191 Marsh Wall, London E14 9RS, or e-mail cash independent.co.uk.. Q I have been awarded arrears of disability living allowances part of which I would like to invest in a savings account with an ethical bank. This has little impact on Ms Chakarova’s present circumstances, they may change.

Having a UK passport will make travel considerably easier.Ms Greenwood says as Ms Chakarova is already deemed resident for tax purposes, permanent residency is unlikely to make many changes to her financial planning.One thing she should remember is that although she will obtain permanent residency, she will not be deemed to be UK-domiciled. Domicile is more difficult to change, and has little to do with country of residence, which is usually considered to be the birthplace.A person would be deemed to be UK-domiciled if they lived in the UK for 17 out of 20 years. In effect, this will entitle her to permanent residency in the UK. After five years she can apply for a certificate of naturalisation which will enable her to become a British citizen and apply for a UK passport. With British citizenship she will be free to leave and re-enter the UK as she wishes and retain her UK passport.