UK Budget
- Bahnstormer_vRS
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Re: UK Budget
Yes, although wouldn't you be better getting advice from your Independent Financial Advisor?
Guy
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Guy
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In small proportions, we just beautie see:
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And in short measures, life may perfect bee. - Ben Jonson (1572 – 1637)
Inscription on the Longitude Dial
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Re: UK Budget
1 in 700 pints are free!
Jon
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Re: UK Budget
You could ask, but how will you know if the person who responds knows what they are talking about?
Neil
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Re: UK Budget
It might have been a different forum, but I thought someone had mentioned a certain expertise in this area previously.
Re: UK Budget
So for me, that's a free pint about every 2 years then! I'll drink to that! Or drown my sorrows, I haven't worked out which yet! (Non political, see!)
Re: UK Budget
Regarding pints. I thought they lowered duty by 1.7%. I thought given a price of £6.00 a pint, this would be about 10p a pint.
Was she implying here's only 60p duty in a pint, so 1.7% is 1p?
It would be less actually because there's VAT on the duty as well.
(Edit. I just checked, and the duty on 5% lager is about 54p per pint, so the change is about 1p including VAT)
Was she implying here's only 60p duty in a pint, so 1.7% is 1p?
It would be less actually because there's VAT on the duty as well.
(Edit. I just checked, and the duty on 5% lager is about 54p per pint, so the change is about 1p including VAT)
Re: UK Budget
I have found the answer to my question now.
I had wondered about the tax position on personal pension pots after the budget. Previously they haven't been counted for IHT purposes. Now they will be in a couple of years time. When you take the money out you have always had to pay income tax on the money as you take it out. I wondered if paying the IHT replaced the income tax, but it's in addition.
So if you have a pension pot worth £1m, assuming it's all taxable, it would cost you 400k in IHT, and will still cost at least 200k in income tax over time making at least 600k tax on that pension pot.
I had wondered about the tax position on personal pension pots after the budget. Previously they haven't been counted for IHT purposes. Now they will be in a couple of years time. When you take the money out you have always had to pay income tax on the money as you take it out. I wondered if paying the IHT replaced the income tax, but it's in addition.
So if you have a pension pot worth £1m, assuming it's all taxable, it would cost you 400k in IHT, and will still cost at least 200k in income tax over time making at least 600k tax on that pension pot.
Re: UK Budget
HMRC document here…JAFO wrote: ↑Sat Nov 02, 2024 11:11 am I have found the answer to my question now.
I had wondered about the tax position on personal pension pots after the budget. Previously they haven't been counted for IHT purposes. Now they will be in a couple of years time. When you take the money out you have always had to pay income tax on the money as you take it out. I wondered if paying the IHT replaced the income tax, but it's in addition.
So if you have a pension pot worth £1m, assuming it's all taxable, it would cost you 400k in IHT, and will still cost at least 200k in income tax over time making at least 600k tax on that pension pot.
https://www.gov.uk/government/consultat ... nd-payment
And no it may not cost you at least £200k in IT over time! It could equally cost zero (if drawn by a non taxpayer) and the maximum would be £270k (if all taxed at 45%).
They are also completely separate aspects…
1). The IHT liability of the estate - an asset taxed like other assets.
2). The IT liability of the person who has inherited an asset that allows income to be drawn - income taxed according to the rules for that income source.
Neil
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Re: UK Budget
Perhaps you should vote with your feet, (see what I did there) and drink in a less expensive pub?1 in 700 pints are free!
Beer prices will not go down.
I started out with nothing and I still have most of it left
Re: UK Budget
IHT is one of the more complex pieces of legislation, as is pension topics (eg you might be able to apply for certain types of tax protection - have a look at that), and you might also need to be thinking about lifetime allowance. I'm generally a bit underwhelmed by the IFAs I've spoken with but in this case it's almost certainly worth finding a specialist who can help if your pot (or DB equivalent) is approaching those levels, for example I believe there is still an exemption for regular gifting from income that avoids the 7 year IHT rule that might work quite nicely if you annuitise some of the funds.JAFO wrote: ↑Sat Nov 02, 2024 11:11 am I have found the answer to my question now.
I had wondered about the tax position on personal pension pots after the budget. Previously they haven't been counted for IHT purposes. Now they will be in a couple of years time. When you take the money out you have always had to pay income tax on the money as you take it out. I wondered if paying the IHT replaced the income tax, but it's in addition.
So if you have a pension pot worth £1m, assuming it's all taxable, it would cost you 400k in IHT, and will still cost at least 200k in income tax over time making at least 600k tax on that pension pot.
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Re: UK Budget
I can't drink alcohol, can I take my bit as cash then?
C60 MKI, MKII, MKIII: "some",
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C600 Tritechs,
C63 "some",
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C4, C40, C8, C9, C3, C5, C20 & 23FLE
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C6 & C60 Kingfishers,
C600 Tritechs,
C63 "some",
C65 "some",
C4, C40, C8, C9, C3, C5, C20 & 23FLE
Some other brands
Re: UK Budget
@nbg @Timishere
Thanks for your thoughts and links. I think I will have some funds appearing unexpectedly for some watch purchases. The BC Classic looks even more attractive even without modifications.
Thanks for your thoughts and links. I think I will have some funds appearing unexpectedly for some watch purchases. The BC Classic looks even more attractive even without modifications.
- Bahnstormer_vRS
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Re: UK Budget
Just sharing comment from the holder of one of my Pension funds on the subject, received by email a few hours post budget;-
Pensions become subject to inheritance tax
From April 2027, defined contribution pension pots will be subject to inheritance tax at the death of the holder. Under current rules, pension funds are not counted as part of your estate for IHT purposes, so you could pay up to £1,073,100 to your beneficiaries as a lump sum tax free. Currently, only 6% of households pay IHT, but this rule change will increase that number.
The Chancellor also opted to freeze the nil-rate band at £325,000, which is the amount you can pass on before it becomes subject to IHT, and the residence nil-rate band at £175,000, which is the value of a property you can pass to your direct descendants without paying tax. Today’s Budget doesn’t change the spousal exemption from IHT, and spouses can still pass unused allowances to their partner, meaning a possible total of £1m can be passed on by a married couple tax-free.
There were a number of changes to pensions rumoured ahead of the Budget which didn’t happen, including a reduction (or scrappage) of the pension commencement lump sum, tax-free cash allowance or pension contribution relief.
I won't offer a comment; make what you will of it.
Guy
Pensions become subject to inheritance tax
From April 2027, defined contribution pension pots will be subject to inheritance tax at the death of the holder. Under current rules, pension funds are not counted as part of your estate for IHT purposes, so you could pay up to £1,073,100 to your beneficiaries as a lump sum tax free. Currently, only 6% of households pay IHT, but this rule change will increase that number.
The Chancellor also opted to freeze the nil-rate band at £325,000, which is the amount you can pass on before it becomes subject to IHT, and the residence nil-rate band at £175,000, which is the value of a property you can pass to your direct descendants without paying tax. Today’s Budget doesn’t change the spousal exemption from IHT, and spouses can still pass unused allowances to their partner, meaning a possible total of £1m can be passed on by a married couple tax-free.
There were a number of changes to pensions rumoured ahead of the Budget which didn’t happen, including a reduction (or scrappage) of the pension commencement lump sum, tax-free cash allowance or pension contribution relief.
I won't offer a comment; make what you will of it.
Guy
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- gannet
In small proportions, we just beautie see:
And in short measures, life may perfect bee. - Ben Jonson (1572 – 1637)
Inscription on the Longitude Dial
Hatfield House, Hatfield, Hertfordshire AL9 5NB, England
And in short measures, life may perfect bee. - Ben Jonson (1572 – 1637)
Inscription on the Longitude Dial
Hatfield House, Hatfield, Hertfordshire AL9 5NB, England