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Pension instead of BTL to save on tax....
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When I start to unlock my pension funds, it's only going to go in one direction - out.... so this isn't going to affect me.
However, I can see the scenario they are referring to - and I can appreciate how it could be easy to fall into this without realising it.
The underlying problem is - what constitutes recycling of funds - as there isn't any firm definition of it, much like the mess that is the rest of the tax system.Last edited by centurian; 5 September 2015, 11:56. -
Originally posted by centurian View PostWhen I start to unlock my pension funds, it's only going to go in one direction - out.... so this isn't going to affect me.
However, I can see the scenario they are referring to - and I can appreciate how it could be easy to fall into this without realising it.
The underlying problem is - what constitutes recycling of funds - as there isn't any firm definition of it, much like the mess that is the rest of the tax system.What happens in General, stays in General.You know what they say about assumptions!Comment
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Originally posted by centurian View PostWhen I start to unlock my pension funds, it's only going to go in one direction - out.... so this isn't going to affect me.
However, I can see the scenario they are referring to - and I can appreciate how it could be easy to fall into this without realising it.
The underlying problem is - what constitutes recycling of funds - as there isn't any firm definition of it, much like the mess that is the rest of the tax system.
To fall foul of the rules savers would need to have taken a tax-free lump sum of £7,500 or more (smaller sums are exempt). As you are allowed to withdraw a quarter of your savings tax-free, this equates to a pension worth £30,000, which is about the value of the average British person’s fund.
If savers then use money that they were previously using to make debt repayments to increase their pension payments by more than 30pc, they face being charged the 70pc fine.Comment
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All that pension stuff is a big con - rules get changed very frequently, how can anybody possibly invest now using CURRENT rules as guidance for investment when in 10 years rules will certainly change and they will certainly be for the worse?
That's why BTL makes more sense - liquid asset that can be sold with capital gains pocketed tax free.Comment
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Originally posted by AtW View PostAll that pension stuff is a big con - rules get changed very frequently, how can anybody possibly invest now using CURRENT rules as guidance for investment when in 10 years rules will certainly change and they will certainly be for the worse?
Originally posted by AtW View PostBTL is an investment vehicle and like with all investment vehicles the government changes the rules.
That's why BTL makes more sense - liquid asset that can be sold with capital gains pocketed tax free.
Lots of people I know have ended up as accidental landlords. Some have decided it was a good way to invest so brought more properties while others eventually off loaded their property/ies after a few years of trying. Most sold to another landord..."You’re just a bad memory who doesn’t know when to go away" JRComment
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Originally posted by AtW View Post..............
That's why BTL makes more sense - liquid asset that can be sold with capital gains pocketed tax free.Originally posted by SueEllen View Post..................
That's if you can actually sell the property.
Lots of people I know have ended up as accidental landlords. Some have decided it was a good way to invest so brought more properties while others eventually off loaded their property/ies after a few years of trying. Most sold to another landord...Comment
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Originally posted by SueEllen View PostA pension is just a savings vehicle and like with all saving vehicles the government changes the rules.
Govt can't blindly rob savers deposits in banks, as in capital - they can do it with low interest, savings can be moved very quickly where as pensions are totally locked in - you are at the mercy of Govt _and_ parasites from private industry who control said pensions. Frankly you might not even survive until your retirement age, money might be required very urgently and what you going to do with your nicely locked pension for another 10-15 years, can you legally sell it to somebody else with reasonable discount? I thought not.
Originally posted by SueEllen View PostThat's if you can actually sell the property. Lots of people I know have ended up as accidental landlords. Some have decided it was a good way to invest so brought more properties while others eventually off loaded their property/ies after a few years of trying. Most sold to another landord...
20 years of house price inflation would give better results than Govts pension with supposed tax benefits, which they'd most certainly take away under guise of "fairness".Comment
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Originally posted by AtW View PostNo.
Govt can't blindly rob savers deposits in banks, as in capital - they can do it with low interest, savings can be moved very quickly where as pensions are totally locked in - you are at the mercy of Govt _and_ parasites from private industry who control said pensions. Frankly you might not even survive until your retirement age, money might be required very urgently and what you going to do with your nicely locked pension for another 10-15 years, can you legally sell it to somebody else with reasonable discount? I thought not.
Originally posted by AtW View PostSo it's sellable then?
20 years of house price inflation would give better results than Govts pension with supposed tax benefits, which they'd most certainly take away under guise of "fairness"."You’re just a bad memory who doesn’t know when to go away" JRComment
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Originally posted by SueEllen View PostYou mean like the Greek government did?
And it wasn't Cyprus Govt that did the haircut - it's the bank going bankrupt who had to do it. If you are worried about it then buy UK gilts - so far no defaults in recent 100 years, compared to Greece's like 4 defaults.
On the other hand in this country retrospective changes with people's pensions happen very frequently. NEGATIVE changes.
Originally posted by SueEllen View PostAs long as someone wants to buy it.Last edited by AtW; 5 September 2015, 19:10.Comment
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