Investments - Strategies, Ideas, Options & advice

[PaulMdj]

Oddly enough been out for a swallow tonight with three pit lads. It was a very childish night talking and laughing about rammel.
However, talk got around to property/ our house and how to protect it from Mr Tax man. I think it has been signed over to the kids but there is some confusion as to whether it should have a 7 or 12 year period for it to transpire that the tax man cannot touch it.

It’s not the Tax man Tash, I think Fade & Die mentioned it, it’s the Local Council.

If you put your house in the kids name and continue to live in it, then need care and tell the Council the house is not yours etc, they can still use it as an assett against you as you continued to live in it and have only put the house in their name to avoid costs etc.

 

[Canfordhacker]

Savings accounts report all interest now to HMRC so if you go over your savings allowance they will adjust your tax code the following year

Great thread.

Similar question. I had a chargeable event in an offshore bond. Management company have sent me a chargeable gain certificate - will they have sent one to HMRC as well (I am UK tax domiciled)?

Cheers

 

[PJ87]

Great thread.

Similar question. I had a chargeable event in an offshore bond. Management company have sent me a chargeable gain certificate - will they have sent one to HMRC as well (I am UK tax domiciled)?

Cheers

I'm not entirely sure to be honest, I bank with raisin (saving platform) and I've had bonds in turkish banks, Abu Dhabi banks but because it's a British based savings platform they report to HMRC

I'm not sure what offshore will report

Did you give them your NI number etc?

 

[Old Colner]

But I don't enter the 40% tax bracket, which is why I said what I said and is what I do

I wasn't commenting on your personal situation, I was just giving a bit of reasoning to your comments .

 

[Bunkermagnet]

I wasn't commenting on your personal situation, I was just giving a bit of reasoning to your comments .

No problem, no offence or irritation was taken

 

[PNWokingham]

Great thread.

Similar question. I had a chargeable event in an offshore bond. Management company have sent me a chargeable gain certificate - will they have sent one to HMRC as well (I am UK tax domiciled)?

Cheers

I don't trust that HMRC will get details of interest or other things like dividend income - i have been doing a tax return for 25 years and declare all in the relevant summary box on the tax return just as total interest etc but HMRC are so useless i don't trust them to join the dots. Case in point is that i double taxed myself by declaring P11D benefit of Bupa for 3 years despite the tax being "payrolled" without my knowledge and they never spotted that - i had to go back and let them know - the one from 3 years ago i had to do so in writing. After dozens of hour long phone calls - waiting nearly an hour to get through i was told i could not speak to a manager and that the 3y old one was dealt with when it clearly wasn't. I lost the will to live in the end as there was no options left. HMRC are not fit for purpose. What should happen is that your earned income, tax paid, p11d etc should all be there pre-popultaed on your tax return when you log in. The same with every line of interest from every bank/ building society and the summary of all dividends from each investment account - so you go in, chck it looks correct and then see if you need to add anything else, like rental income etc. This should be easy - all banks/ Brokerages provide the summary info automatically under your NI number and the form is ready to sign off amend in the weeks after tax year end. Hopefully we will get there one day

 

[Springveldt]

Salary sacrifice pension through work (which has been doing brilliant the last few years due to the US stock market going nuts) and a stocks and shares ISA for both me and the wife.

The wife is very, very risk adverse but having a cash ISA a few years ago that was paying next to nothing just wasn't worth it and we both switched to stocks and shares ISA around 2021 which in hindsight was extremely lucky. My stocks and shares ISA currently has an annualised return of 12.58% with the vast majority sat in a mutual fund that tracks the S&P 500 index and has a cost of 0.06%.

It all looks great on paper since there hasn't really been a stock market crash since I opened the ISA's but no doubt there will be one eventually.

I randomly came across a subreddit called Bogleheads which basically advocates just buying an ETF or Mutual Fund that tracks an index and over time it's very hard for stock picking funds to beat it due to them having a very low cost compared to the specialised ones which can be charging you between 0.8%-1% so they have to consistently beat the market by that to beat the index trackers. Very few actually do over a 10 or 20 year period. It seemed to me to be the lowest risk when getting into the stock market.

 

[PNWokingham]

Salary sacrifice pension through work (which has been doing brilliant the last few years due to the US stock market going nuts) and a stocks and shares ISA for both me and the wife.

The wife is very, very risk adverse but having a cash ISA a few years ago that was paying next to nothing just wasn't worth it and we both switched to stocks and shares ISA around 2021 which in hindsight was extremely lucky. My stocks and shares ISA currently has an annualised return of 12.58% with the vast majority sat in a mutual fund that tracks the S&P 500 index and has a cost of 0.06%.

It all looks great on paper since there hasn't really been a stock market crash since I opened the ISA's but no doubt there will be one eventually.

I randomly came across a subreddit called Bogleheads which basically advocates just buying an ETF or Mutual Fund that tracks an index and over time it's very hard for stock picking funds to beat it due to them having a very low cost compared to the specialised ones which can be charging you between 0.8%-1% so they have to consistently beat the market by that to beat the index trackers. Very few actually do over a 10 or 20 year period. It seemed to me to be the lowest risk when getting into the stock market.

I think salary sacrifice is the best tool that people may not uderstand. We can do it on the "matching" element of our pension at work - which is only 3% but that still adds up a lot, especially when you factor in the company also adding back the national insurance it would have cost them.

A real hiddeen gem also that many are not aware of are local council AVCs. The key benefits are saving tax and NI as per salary sacricfice rules but the the people may not have seen is that you can take the whope pot tax free not just 25% - i encouraged the wife to make full use of this as the main long-term savings vehicle

 

[hambugerpete]

Salary sacrifice pension through work (which has been doing brilliant the last few years due to the US stock market going nuts) and a stocks and shares ISA for both me and the wife.

The wife is very, very risk adverse but having a cash ISA a few years ago that was paying next to nothing just wasn't worth it and we both switched to stocks and shares ISA around 2021 which in hindsight was extremely lucky. My stocks and shares ISA currently has an annualised return of 12.58% with the vast majority sat in a mutual fund that tracks the S&P 500 index and has a cost of 0.06%.

It all looks great on paper since there hasn't really been a stock market crash since I opened the ISA's but no doubt there will be one eventually.

I randomly came across a subreddit called Bogleheads which basically advocates just buying an ETF or Mutual Fund that tracks an index and over time it's very hard for stock picking funds to beat it due to them having a very low cost compared to the specialised ones which can be charging you between 0.8%-1% so they have to consistently beat the market by that to beat the index trackers. Very few actually do over a 10 or 20 year period. It seemed to me to be the lowest risk when getting into the stock market.

Same here , salary sacrifice as much as I can to my sipp and invest that in passive ETFs tracking global markets and s&p 500. Also a stocks ISA that I saved a chunk in to. Cash is not a long term way to save as it gets eroded by inflation, just an emergency fund of about 2 months pay.

 

[PJ87]

Same here , salary sacrifice as much as I can to my sipp and invest that in passive ETFs tracking global markets and s&p 500. Also a stocks ISA that I saved a chunk in to. Cash is not a long term way to save as it gets eroded by inflation, just an emergency fund of about 2 months pay.

I'm in my work scheme which is salary sacrifice, but on top of that I do 4% of my wages into AVCs

 

[hambugerpete]

I'm in my work scheme which is salary sacrifice, but on top of that I do 4% of my wages into AVCs

Yes have a work scheme too, saving as much as I can. But also making sure I spend some now

 

[PJ87]

Yes have a work scheme too, saving as much as I can. But also making sure I spend some now

I was going to put more away but I did the sums and because I've done AVCs since I was 27 when I hit 58 I will have enough in them to take a good lump sum and keep my work pension full amount to take .. so decided to just spend the money instead

 

[Bunkermagnet]

I cant help but think there's too much assumption that the tax free lump's you're able to take out of a private pension will stay. I would think its will stop, as well as the retirement age increasing to 70.

 

[howbow88]

Slightly linked to this thread, but what do people think about overpaying on mortgages? I often read that it is a bit silly because long-term, it's better to put that money into your pension. However, I just love the idea of being mortgage free and so we've been paying off the maximum allowed for the last 2 or 3 years (10% extra per year), and we will continue to do so until we're finished with it.

 

[hambugerpete]

I cant help but think there's too much assumption that the tax free lump's you're able to take out of a private pension will stay. I would think its will stop, as well as the retirement age increasing to 70.

The age you can do it is moving to 57 or 8 from 55 , don't think there'll be any drastic changes any time soon.

 

[hambugerpete]

Slightly linked to this thread, but what do people think about overpaying on mortgages? I often read that it is a bit silly because long-term, it's better to put that money into your pension. However, I just love the idea of being mortgage free and so we've been paying off the maximum allowed for the last 2 or 3 years (10% extra per year), and we will continue to do so until we're finished with it.

What ever works for you. We're still on a low rate so I've been overpaying in to a high interest account and will pay that off when I re mortgage in August

 

[Bunkermagnet]

The age you can do it is moving to 57 or 8 from 55 , don't think there'll be any drastic changes any time soon.

Pre-budget, there was a lot of noise about the possibility of the tax free lump being removed.

 

[PJ87]

Pre-budget, there was a lot of noise about the possibility of the tax free lump being removed.

The press have a lot to answer for. Now their moaning that people took money out their pensions to avoid it and have lost out

Maybe don't spread fake scaremongering stories then!

Gutter press

 

[hambugerpete]

Pre-budget, there was a lot of noise about the possibility of the tax free lump being removed.

Pre budget there was a lot of noise about a lot of things. Per mile road tax, NI on pension contributions and such. Papers have to fill the pages somehow.

 

[PJ87]

Pre budget there was a lot of noise about a lot of things. Per mile road tax, NI on pension contributions and such. Papers have to fill the pages somehow.

Honest information doesn't sell unfortunately