Pension Tax free lump sum could be a thing of the past..... (1 Viewer)

[MC 55 FUN]

Capital gains tax is already charged on houses Wino. Would you like it to be charged double.....

Not on your main home - only 2nd / investment properties

 

[Speve]

YES!!! I have beaten them to it I drew my tax free lump out last year just in time by the sound of it,put any spare in stocks and shares ISA at least giving us an income and tax free.

 

[MC 55 FUN]

Not tax free wino all property is liable for Inheritance Tax. Besides this, I have properties that will be liable for Capital Gains tax. So what more could we do in the south to appease you in the hinterland.......

Not all property is liable for inheritance tax either - it has to be worth above a certain value & there are other conditions too

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[Judge Mental]

The 25% tax free lump sum perk will totally disappear..replaced by an ISA scheme with no relief

it was in the times of Sunday. more reading here:

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=george osbornes pension lump sum bombshell

 

[MC 55 FUN]

The 25% tax free lump sum perk will totally disappear..replaced by an ISA scheme with no relief

it was in the times of Sunday. more reading here:

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=george osbornes pension lump sum bombshell

What would an ex Lib Dumb Minister know about anything - ever ?

 

[buttons]

Not on your main home - only 2nd / investment properties

Correct.......

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[buttons]

Not all property is liable for inheritance tax either - it has to be worth above a certain value & there are other conditions too

This is just another unfair way of extracting additional funds from the south east, most homes will be in the IT bracket down here.

 

[The Wino]

This is just another unfair way of extracting additional funds from the south east, most homes will be in the IT bracket down here.

Serves them soft southerners right we have ter live in t paper bag in middle o road oop norf

 

[buttons]

Serves them soft southerners right we have ter live in t paper bag in middle o road oop norf

Is Leicester oop norf:. Isn't that where shifty lives, he calls it Milton Keynes.

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[Judge Mental]

There is no capital gains tax on the house you live in a huge tax free windfall for those soft sutherners

Your not kidding...Our house on the market now

 

[Techno]

Is Leicester oop norf:. Isn't that where shifty lives, he calls it Milton Keynes.

No

 

[RandallC]

This got me a bit concerned at first as although we don't work, we have not drawn any pension yet, either a lump sum or as a regular income (too young!) however the article does say:

The Chancellor is not expected to make the change retrospective, however, so tax-free lump sums already built up would be safe.

But Mr Webb warned: ‘The Isa approach would stop people building up any more tax-free lump sums on future pension savings.

‘Even for someone 10 years away from pension age this could have a big impact on their retirement planning.’​

So it would ONLY affect FUTURE PENSION CONTRIBUTIONS, not those which have already been built up, so for us it's not an issue (unless we chose to go back to work and contribute again ... no chance) but I can see how it would be a major worry for those who are still working and a fair way from being able to draw their pension.

Being a bit of a sceptic I rather suspect the retrospective application refers to those who have already taken it rather than those that have one saved. Where any lumps taken after its introduction will be taxed regardless of when the contributions were made.

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[buttons]

Being a bit of a sceptic I rather suspect the retrospective application refers to those who have already taken it rather than those that have one saved. Where any lumps taken after its introduction will be taxed regardless of when the contributions were made.

That makes more sense...

 

[Techno]

Junction thirty odd before you're getting northerly

 

[buttons]

Junction thirty odd before you're getting northerly

I wold take a Sherpa if I went further north than J30, sounds like Tenzing country to me...

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[GJH]

It looks like I will be a customer advisor in B&Q yet

Nah, you'll be OK Chris. As a rich lawyer you don't need a pension

 

[Techno]

I wold take a Sherpa if I went further north than J30, sounds like Tenzing country to me...

The M1 used to stop at Leeds

 

[MC 55 FUN]

This is just another unfair way of extracting additional funds from the south east, most homes will be in the IT bracket down here.

Very true - we retired from West Sussex to South West Wales in 2014 & property values here are about 50 % cheaper, the property we bought here would have been at least 550k in West Sussex - £280k here . . . & £280k buys a lot in Wales.

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[Techno]

Very true - we retired from West Sussex to South West Wales in 2014 & property values here are about 50 % cheaper, the property we bought here would have been at least 550k in West Sussex - £280k here . . . & £280k buys a lot in Wales.

You'd get change

 

[MC 55 FUN]

You'd get change

Very true too Techno . . & that change funded the MH & a comfortable retirement etc
Property values in most of the U.K. are plain crazy with location, location, location driving insane increases.

Best thing we've done so far.

 

[BusyBuilder]

Serves them soft southerners right we have ter live in t paper bag in middle o road oop norf

A paper bag ???? you were lucky !!.........

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[grumps147]

Wonder if this applies to all, I am thinking of MP's pensions? Be nice to see the small print and exemptions when the legislation is published.

 

[Judge Mental]

Serves them soft southerners right we have ter live in t paper bag in middle o road oop norf

why ehi lad...to good for em

 

[Judge Mental]

Wonder if this applies to all, I am thinking of MP's pensions? Be nice to see the small print and exemptions when the legislation is published.

They are all buy to let landlords..well at least 99% of the tories

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[Chris]

Nah, you'll be OK Chris. As a rich lawyer you don't need a pension

Want a bet?

 

[buttons]

Very true - we retired from West Sussex to South West Wales in 2014 & property values here are about 50 % cheaper, the property we bought here would have been at least 550k in West Sussex - £280k here . . . & £280k buys a lot in Wales.

Yeah but living in Wales is a bit of a penance even with with 10 acres...

 

[MC 55 FUN]

Yeah but living in Wales is a bit of a penance even with with 10 acres...

Ha ha . . nooo it's fine - some of the best beaches in Europe, stunning countryside & even the sheep are friendly . . . .

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[MC 55 FUN]

Bear in mind that even a £500k '' pension pot '' will only achieve a pension of around £19k per year ( @ ~ 5% ) - after your 25% tax free has been taken

 

[Puddleduck]

I'm reading the newspaper reports in the same way as @Minxy Girl and won't panic until I have had chance to read the small print when (and if) the proposal is made in the budget. Being a cynic I feel that perhaps this scenario is being touted so that the actual proposal will be seen with relief.

I don't see how any change can affect the pension funds people already hold even if they are not drawing a pension from these funds.

 

[Sandancers]

Agreeing with Puddleduck that this could be the "red herring", so that the real proposals, such as limiting tax relief on contributions to 25% for all is greeted with a sigh of relief.

After all it is only a couple of years since Georgie boy introduced the "flexible draw-down" one of the main features of which is being able to take 25% tax free.

For those of you who put into a pension pot at 40% tax relief, H&L do a calculator which shows the break point of how much your contributing against how much tax relief you get at various %s.

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