Tractor or pension?

What would you do to alleviate a tax bill this financial year?

  • Fund your pension

    Votes: 33 41.8%
  • Buy a tractor or such

    Votes: 22 27.8%
  • Nothing and suck up the tax bill

    Votes: 16 20.3%
  • Something else

    Votes: 8 10.1%

  • Total voters
    79

CPF

Member
Arable Farmer
Put a deposit on a house rent it out or buy it out right if you made that much profit instant income the best Pension you would ever have and when you come to retire sale them all
 

Boysground

Member
Mixed Farmer
Location
Wiltshire
Good points, all that I understand.
Inflation makes all this more complicated imo.
My old tractor is worth more this year than it was in a similar quote last year and I've had another years work out of it. A new one is obviously more as well but the theory is when is the time exactly right to do a deal to get the best result? In 3 years time I will be less interested and it will cost more. Unknown subs on top and the 'need' will be less financially.

Of course the other argument is that you spend a lot of time on a tractor working. Why not have something nice and shiny that you enjoy.

Bg
 

Highland Mule

Member
Livestock Farmer
Put a deposit on a house rent it out or buy it out right if you made that much profit instant income the best Pension you would ever have and when you come to retire sale them all

Rubbish.

Taxed to get the money into your hand.
Taxed to get the money changed into property.
Taxed on the income from the rent.
Taxed on any capital gain when you sell.
Inheritance tax if the worst happens before you get a chance to retire.

A pension gives instant tax relief, profits/ growth without taxation, lump sum at 65 and full inheritance relief if you pass before your time. Add in the ability to phase income as and when, it’s the ultimate tax shelter.
 

CPF

Member
Arable Farmer
Rubbish.

Taxed to get the money into your hand.
Taxed to get the money changed into property.
Taxed on the income from the rent.
Taxed on any capital gain when you sell.
Inheritance tax if the worst happens before you get a chance to retire.

A pension gives instant tax relief, profits/ growth without taxation, lump sum at 65 and full inheritance relief if you pass before your time. Add in the ability to phase income as and when, it’s the ultimate tax shelter.
My previous post I took the advice of a farmer many years ago and I’ve built up quite a good portfolio so at the age of 52 I’ve sold them all and retired so I’m enjoying life doing what I want to do so it does work
 
Last edited:

nelson

Member
Mixed Farmer
Location
herefordshire
My previous post I took the advice of the farmer many years ago and I’ve built up quite a good portfolio so at the age of 52 I’ve sold them all and retired so I’m enjoying life doing what I want to do so it does work
did you pay tax on them when sold ?
 

ewald

Member
Arable Farmer
Location
Mid-Lincs
Rubbish.

Taxed to get the money into your hand.
Taxed to get the money changed into property.
Taxed on the income from the rent.
Taxed on any capital gain when you sell.
Inheritance tax if the worst happens before you get a chance to retire.

A pension gives instant tax relief, profits/ growth without taxation, lump sum at 65 and full inheritance relief if you pass before your time. Add in the ability to phase income as and when, it’s the ultimate tax shelter.
Don’t forget the time taken to sell - we sold a rental property in May, might complete in November (no promises, mind) - far from a liquid asset.
Plus the periodic problems with tenants, repairs, new Epc standards etc etc.

We had a good run with buy to let, but the boat has sailed...
 

Highland Mule

Member
Livestock Farmer
Don’t forget the time taken to sell - we sold a rental property in May, might complete in November (no promises, mind) - far from a liquid asset.
Plus the periodic problems with tenants, repairs, new Epc standards etc etc.

We had a good run with buy to let, but the boat has sailed...

Got something wrong in my post above though, when I read it back - tax free lump sum is available at 55, not 65. So you can:
Put £100k in at age 53, get £25k back two years later and pay no tax on it, then chose to dribble the rest out as tax efficiently as you want for the rest of your life; or
Draw £100k from your business and pay £40k tax straight away. Invest the remaining £60k in something that just gives you a bigger tax bill the next year again.
 

topground

Member
Location
North Somerset.
How long do you expect me to live?
A question I asked a pension advisor in a sharp suit and driving a flash car during an advice session ( which was free) where he was talking about the various returns available on investments while being shy about commission rates if his advice failed.
 

SRRC

Member
Location
West Somerset
Good points, all that I understand.
Inflation makes all this more complicated imo.
My old tractor is worth more this year than it was in a similar quote last year and I've had another years work out of it. A new one is obviously more as well but the theory is when is the time exactly right to do a deal to get the best result? In 3 years time I will be less interested and it will cost more. Unknown subs on top and the 'need' will be less financially.
I know a pension isn't as exciting as a shiny new tractor, and I'm afraid you have already decided. For goodness sake fill up your pension boots as full as possible, the government adds to it, the wonders of compound interest will eventually give the best return to a pension.
BTL properties are all very well but won't give anything like the same return, you also need to have diverse investment portfolio.
 

Top cereal and oilseed growers honoured at the Yield Enhancement Network Awards 2021

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Despite an average growing year for most crops, many growers managed to go above and beyond their predicted max yields, with Lincolnshire grower Tim Lamyman taking the top spots for his wheat yields and his world record breaking winter barley yield.

The highest cereal and oilseed yields achieved at harvest 2021 were announced at this year’s Yield Enhancement Network (YEN) Awards on Wednesday 24th November at the Croptec Show. With award presentations by Tom Bradshaw, Vice President of NFU, 24 farms took home the evening’s top awards for highest yield and highest potential yield achieved for wheat, winter and spring barley, oats, and oilseed. The 2021 winners came from all corners of the UK, as well as from as far afield as Finland and New Zealand.

Familiar names from 2020 made the...
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