Pension or property

Rowland

Member
I would take care here:

Using joint allowances is only possible if everything is in joint names, and even then only a % is possible, not the full ammount.

You may have done it, that doesn't mean it's acceptable to HMRC.

HMRC can go back years, so don't be surprised if they catch you out.


...........and of course, you can only use your allowance once.
That’s why you do a deed transfer and use a solicitor to draw up the docs and put it in how ever many names you want. We added our wife’s names to the deeds making 6 allowances. All docs drawn up by solicitor and submitted to HMRC by very reputable Accountants. Probably did the 1st one 10years or more ago and one a year for the following 6-7years . It was the solicitor’s idea .
 
I cannot understand most peoples obsession with not paying tax, when we sold the farm my gain on the 9% share was 480k, as a director this was taxed at 10% is that not a reasonable contribution to society for a gain of that amount.
my buy to let property showed a gain of 150k after allowable deductions for improvements and living in it, I paid 23k cgt.
That left me with over half a million of spendable money as opposed to a paper assets with poor returns.
 

robs1

Member
I cannot understand most peoples obsession with not paying tax, when we sold the farm my gain on the 9% share was 480k, as a director this was taxed at 10% is that not a reasonable contribution to society for a gain of that amount.
my buy to let property showed a gain of 150k after allowable deductions for improvements and living in it, I paid 23k cgt.
That left me with over half a million of spendable money as opposed to a paper assets with poor returns.
No one likes paying tax anymore than some dont want to pay a fair amount for food but lots for a new phone or pint of beer
 

Highland Mule

Member
Livestock Farmer
I cannot understand most peoples obsession with not paying tax, when we sold the farm my gain on the 9% share was 480k, as a director this was taxed at 10% is that not a reasonable contribution to society for a gain of that amount.
my buy to let property showed a gain of 150k after allowable deductions for improvements and living in it, I paid 23k cgt.
That left me with over half a million of spendable money as opposed to a paper assets with poor returns.
10% entrepreneurs relief on the farming Ltd Co and what looks like a PPR relief fudge for your BTL investment - looks like you’ve worked pretty hard to minimise your tax bill within the constraints of law, if not necessarily the spirit. No criticism, but surely you can understand why other would prefer to do similar too?
 
10% entrepreneurs relief on the farming Ltd Co and what looks like a PPR relief fudge for your BTL investment - looks like you’ve worked pretty hard to minimise your tax bill within the constraints of law, if not necessarily the spirit. No criticism, but surely you can understand why other would prefer to do similar too?
not a ppr fudge a real one, i bought a pair of cottages at market value from my dad which enabled him to afford a new build for his retirement, so I lived one of them for 18 months then returned to the farmhouse when dad retired.
my original post is not about minimising tax its aimed at people who refuse to do things that would be beneficial to their lives because they don't want to pay tax.
 

Highland Mule

Member
Livestock Farmer
Reprising an old thread after today's prediction for the budget and found the answer to a question asked before:
More multi millionaire property folk than pension millionaires
https://www.bbc.co.uk/news/business-64949083 suggests there's 1.3 million pension millionaires, or a bit less than 4% of the UK current workforce.
enough to buy a reasonable bit of land or commercial property outright so maybe 250k min or 500k ideally ?

you can only stuff 1 mill in a pension i think now so that’s your upper limit
Likely to increase to £1.8 or thereabouts it seems. Haven't a clue if that's beating the longer term inflation or not, but should hopefully keep a few more doctors working.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Reprising an old thread after today's prediction for the budget and found the answer to a question asked before:

https://www.bbc.co.uk/news/business-64949083 suggests there's 1.3 million pension millionaires, or a bit less than 4% of the UK current workforce.

Likely to increase to £1.8 or thereabouts it seems. Haven't a clue if that's beating the longer term inflation or not, but should hopefully keep a few more doctors working.

it needs to, the life time allowance needs to keep up with inflation or pensions become pointless

wonder if they will keep the 25% tax free withdrawal at that higher level ? and cap contributions at 40K pa (see they suggest that could rise to 60 ) ?


about time they made pensions more attractive, they haven’t kept up with other tax efficient investment in recent years
 
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Highland Mule

Member
Livestock Farmer
wonder if they will keep the 25% tax free withdrawal at that higher level ? and cap contributions at 40K pa (see they suggest that could rise to 60 ) ?
I would have thought they would, and they need to. Speaking to my tax accountant mate a few weeks ago, he was explaining the issue with NHS consultants and how the marginal rate was so high it was forcing lots of them to go part time. I have a feeling that if these changes go through it will give him plenty more work too - coupled with the marginal rate on Ltd Co for £50k+ profit range and tax planning will become ever more important.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
I would have thought they would, and they need to. Speaking to my tax accountant mate a few weeks ago, he was explaining the issue with NHS consultants and how the marginal rate was so high it was forcing lots of them to go part time. I have a feeling that if these changes go through it will give him plenty more work too - coupled with the marginal rate on Ltd Co for £50k+ profit range and tax planning will become ever more important.

I hear they are keeping corp tax at 19% as a well for sub 250k profits on SME's ?


looks like our government may finally be waking up to the potential exodus of high earners and business to friendlier countries



Labour will reverse it all when they get in next year though I guess !!
 
I have been putting away a bit in ISAs over the years as well as regular NFU pension contributions but as i have reached 60 and the farm has contracted in size, I'm pondering whether I am better off reducing my pension payments for the last 5 years or transferring a bit from the ISAs each month to top it up since I don't have the spare income floating around in the way I used to. Is there much benefit either way?
 
I would have thought they would, and they need to. Speaking to my tax accountant mate a few weeks ago, he was explaining the issue with NHS consultants and how the marginal rate was so high it was forcing lots of them to go part time. I have a feeling that if these changes go through it will give him plenty more work too - coupled with the marginal rate on Ltd Co for £50k+ profit range and tax planning will become ever more important.

I don't think it was forcing them to go part time - They were chosing to!
 

Highland Mule

Member
Livestock Farmer
I have been putting away a bit in ISAs over the years as well as regular NFU pension contributions but as i have reached 60 and the farm has contracted in size, I'm pondering whether I am better off reducing my pension payments for the last 5 years or transferring a bit from the ISAs each month to top it up since I don't have the spare income floating around in the way I used to. Is there much benefit either way?
My mate was similar, and concluded he was best to pay as much income as he could from his business into his pension, and to live off his ISAs if he needed the cash.

Take professional advice, but I would be making sure that I added the maximum I was allowed to my pension, getting the tax relief on that, especially as you are old enough that you can draw down from the funds whenever.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Agreed, but I've not seen any hint that they will get it.

i think the rise to 25% is already in place for this next year unless this budget overturns it ?

Sunday Telegraph article this week suggested that they might drop the rise for SME's on up to 250k profit

loads of small business are going to be advised t(or forced by circumstances ) to pre-pack and phoenix to drop the BB if the government doesn’t tread very carefully with them, that could cost tax payers billions
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 79 42.2%
  • Up to 25%

    Votes: 65 34.8%
  • 25-50%

    Votes: 30 16.0%
  • 50-75%

    Votes: 3 1.6%
  • 75-100%

    Votes: 3 1.6%
  • 100% I’ve had enough of farming!

    Votes: 7 3.7%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,289
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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