Nearly
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The Telegraph has a piece saying that pension tax relief has cost the Treasury 41billion this year - any bets how long they will carry on with it, in our current situation?Can you not get pension relief after 55?
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.
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
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 workRubbish.
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 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 DID work
did you pay tax on them when sold ?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
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.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...
Don't forget that pension funds are outside your estate for inheritance purposes.
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.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.