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Are you now drawing down against your pension to eat into the capital?
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Jay P
Posted: 14 February 2025 20:26:03(UTC)
#28

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MBA MBA;334438 wrote:
I just learnt today a colleague who was going to retire in five years is going to retire in April because of the imposition of IiHT on pensions. He wants to start withdrawing the money down at £50k pa. He’s one of these people who is the only person in the organisation who can do his job. Replacing him will be hard.

I wonder how many doctors and senior public sector professionals will call it a day sooner.

Let’s not even think about highly successful entrepreneurs. Oh well we can all live off the state

Yep.
Exactly the unintended consequences the Comrades just can't conceive. Or do, but see it as a price worth paying to further their dream.
What was the collective response to millionaires and billionaires leaving the Country? "Good riddance', the lunatics crowed.
What was the State response to anger over Two Tier policing and withholding of information? 'Far-right thugs' whines the Great leader. 'Criminals' conclude the Home Office before any attempt at due process.
There's something very inhuman about Socialism in that it won't even try to understand, nor work with, or even benefit from, basic human instincts.
Instead, it beats, bludgeons and demands everyone conform to some bleak, 'equitable', 'fair' fantasy, all meted out by an overweaning State. God, it is so depressing.

it has never worked, anywhere, ever, and yet still the infantile cling to it. As do the lazy, the cretinous, the truly antisocial, the criminals, the retarded, and frankly the losers.
Believe me, I have NO instinct to leave these people a penny more than I can get away with. Not one penny. Stuff them. The contract is broken. And the State did that, not me.
Enough will have been given to the kids before we both die (barring the truly unexpected), and the rest has already been promised to certain charities - education, second chance, young offenders, children with cancer, all as International as possible - to deny the State anything at all.
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Busy doing nothing
Posted: 14 February 2025 21:27:08(UTC)
#15

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MBA MBA;334443 wrote:
Busy doing nothing;334411 wrote:
Hilda Ogden - Well i have decided to take a wait and see approach regarding drawing down excess capital from my SIPP. Hopefully a change in Government (4+ years and counting) will address these issues that we all have, don't want to do anything now i might regret later on.


I really don’t think this policy is going to be reversed. It will soon start to draw jn some decent revenue directly and indirectly ie folks withdrawing from their pension at the 20% rate and Britain has to find a way to fund its gigantic welfare state and open borders policy. 70m peoole and 53% of all households as net fiscal receipents

I dare say that you and Hilda are correct in your assumption that this policy will not be reversed, however i am still four years away from the state pension, so will adopt a wait and see approach whilst taking the natural yield as income that the SIPP produces.

We come into this world with nothing, and this Government is doing it's damnedest to make sure we all go out with nothing as well.
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Geoff Fitz
Posted: 14 February 2025 21:31:56(UTC)
#18

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Robert D;334422 wrote:
D Bergman;334417 wrote:
I had increased contributions to our SIPPs on the assumption of IHT-free inheritance, so like others I have started to change my plans.
We have 2 SIPPs, valued at £600K & £350K, and have not yet taken any TFLS from them.

I will take the full 25% before April 5th, transfer to our son and take out an 7-year insurance policy written in trust for him to cover the possible IHT (we are 75 & 74 years old).
I will then take up to the maximum 20% income tax liability, with the limitation that this should not push any dividends from my GIA into higher dividend tax.
What we’ll do with the money I’m not yet certain, but I think grandchildren’s ISAs will benefit.

Also am planning a very expensive trip to SE Asia, and Business Class with SIA LON - SIN @ about £7K pp return would swallow up some of the cash, & the spouse has mentioned that Raffles Hotel has very nice suites.

But seriously, I think it makes more sense to use up as much of the SIPPs as possible, use profits/income from ISAs to top up what we need and leave the GIA to the next generation.

And I’m increasing our charitable giving to ensure any higher-rate taxable income is used up.



These are all excellent outcomes with benefits for individuals, families, the economy, and wider society. SIPPs are going back to the true purpose, which is a pension savings vehicle, not a means of avoiding a fair tax. Osborne was wrong to introduce the loophole and Reeves is correct to abolish it.



I have no issue with it being taxed my issue is that it is taxed twice, take the 40% hurts but thats life but if the person who inherits then has to pay another 40% I actually think that is unfair.
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Geoff Fitz
Posted: 14 February 2025 21:46:56(UTC)
#31

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This next tax year I will intentionally go into 40% tax bracket I have been at the 20% with capital top up for the last 3 years since drawing pension. So will start depleting capital in the pension.

I will go into 40% tax and then use surplus income to gift to my daughter of typically 12K plus 6K capital via me and wife.

I will gift my wife £20k/yr to use as she sees fit from capital though she may do a little more heavy lifting on holidays etc. than she has done previously. This £20K is my typical annual growth so capital is not impacted and it is coming from the ISA with a little from the GIA so the only issue is watching capital gains which is now tiresome at £3k at £12k never an issue.

To set into context my DC pension is £1.7M with ISA's of £0.5M and wife has £200K in ISA with DB pension of £20K. I get state pension next year wife in 4 yrs time. We are fortunate!

I was managing everything well at pension of £50K and capital top up to live a comfortable life, Rachel sort of messed this up but we will still be comfortable. Just need to sort the daughter who is quite sensible, thankfully.
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Robert D
Posted: 14 February 2025 22:16:50(UTC)
#29

Joined: 06/11/2016(UTC)
Posts: 1,479
Jay P;334448 wrote:
[grim.



Dreary, depressing and typical
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Robert D
Posted: 14 February 2025 22:18:40(UTC)
#19

Joined: 06/11/2016(UTC)
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Geoff Fitz;334458 wrote:


I have no issue with it being taxed my issue is that it is taxed twice, take the 40% hurts but thats life but if the person who inherits then has to pay another 40% I actually think that is unfair.


The value of most estates is made up of the value of homes - and these have not been previously taxed at all. And most people who die will have paid a fraction of the value of their home at death to buy it - because house prices have gone up so much over time.

The value of the estate at the time of death will therefore have been very largely untaxed. So there is no double taxation

The bleating about the unfairness of inheritance tax is by the already privileged who do not want to contribute to the society that gave them all the advantages in life that they have enjoyed
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beemaboy on 17/02/2025(UTC)
Geoff Fitz
Posted: 14 February 2025 22:29:40(UTC)
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Robert D;334464 wrote:
Geoff Fitz;334458 wrote:


I have no issue with it being taxed my issue is that it is taxed twice, take the 40% hurts but thats life but if the person who inherits then has to pay another 40% I actually think that is unfair.


The value of most estates is made up of the value of homes - and these have not been previously taxed at all. And most people who die will have paid a fraction of the value of their home at death to buy it - because house prices have gone up so much over time.

The value of the estate at the time of death will therefore have been very largely untaxed. So there is no double taxation

The bleating about the unfairness of inheritance tax is by the already privileged who do not want to contribute to the society that gave them all the advantages in life that they have enjoyed




The double taxation point was based on SIPPS previously outside IHT being brought in.

I do take exception though at not contributing to society for a large part of my working life I paid higher rate tax, I paid it willingly and did not use any tax avoidance schemes. In the last 10 years I worked I paid over £700K of tax. I think that is contributing to society. In addition I act as a volunteer adviser helping those who struggle claim benefits etc.

Please be kind when responding we can have a negative view on tax and still help others.
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Robert D
Posted: 14 February 2025 22:50:00(UTC)
#21

Joined: 06/11/2016(UTC)
Posts: 1,479
Geoff Fitz;334465 wrote:


The double taxation point was based on SIPPS previously outside IHT being brought in.


The SIPPs IHT exemption was poor policy and Osborne was wrong to introduce it. SIPPs are pensions savings vehicles to provide an income in retirement, and already carry tax advantages Making them exempt from IHT is another tax break on top and cannot be justified
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Jay P
Posted: 14 February 2025 23:27:59(UTC)
#30

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Robert D;334463 wrote:
Jay P;334448 wrote:
[grim.



Dreary, depressing and typical

A perfect description of every Socialist society ever and anywhere, comrade.
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Jay P
Posted: 14 February 2025 23:48:50(UTC)
#22

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Robert D;334468 wrote:
Geoff Fitz;334465 wrote:


The double taxation point was based on SIPPS previously outside IHT being brought in.


The SIPPs IHT exemption was poor policy and Osborne was wrong to introduce it. SIPPs are pensions savings vehicles to provide an income in retirement, and already carry tax advantages Making them exempt from IHT is another tax break on top and cannot be justified

'...and cannot be justified.'
The robotic cant of the mindless zealot. From every totalitarian State ever.
There is something very wrong with an individual or society that sees something good about stealing from a corpse - and with such indecent haste and pressure on the grieving family with threats of penal interest charges.

I want nothing to do with your idea of society, comrade. And I want you and your fellow idiots to have nothing from my pockets at all.
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