Pensions

doobin

doobin

Well-known member
I’m not keen on a pension as I don’t trust the government not to change the rules as the economy starts to pinch due to an ageing population later on.
 
Grahams

Grahams

Don't complain - suggest what's better
I’m not keen on a pension as I don’t trust the government not to change the rules as the economy starts to pinch due to an ageing population later on.
Yes, Gordon Brown changed the rules a few years ago from everything in a pension being tax free until you take it out to taxing dividends which made a huge difference to overall growth.
 
F

fred

Well-known member
Yes, Gordon Brown changed the rules a few years ago from everything in a pension being tax free until you take it out to taxing dividends which made a huge difference to overall growth.
The dividend change didn't effect a persons pension individually only the investments the pension company made overall which you have no control off anyway. A pension is still very tax efficient if your a company owner. You get 2 bites of the tax free train, your company saves corp tax on its contribution to your pot and if you put in as well you get 20% extra added by the taxman.

If your company owns its own yard for example you can sell this to your pension (get cash out your pension before your 55) and then charge your company big rent from your pension (again tax writeoff for the company and tax free for you when drawn) fund. If your fund doesnt have enough equity it can borrow upto 50% of its pot as well.

Added protection if you need to bump the company then the yard is protected as its owned by your pension comp.

Can also extract cash from he pot before 55 by selling the pension shares in your company.

Lots of angles that can work to your advantage, need to find the right advisor same as finding a good accountant that will walk the line but not cross it, too much anyway.
 
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J

Jimoz

Well-known member
Fred has got the right idea. I looked into it and that is the best option. As for myself just opened one of those lifetime isa if you max it every year it should become a nice little pot at 60 just have it in a market tracker. You get 25% boost from hmrc but actually they're just effectively giving you back your tax ie 20% on gross
 
doobin

doobin

Well-known member
The dividend change didn't effect a persons pension individually only the investments the pension company made overall which you have no control off anyway. A pension is still very tax efficient if your a company owner. You get 2 bites of the tax free train, your company saves corp tax on its contribution to your pot and if you put in as well you get 20% extra added by the taxman.

If your company owns its own yard for example you can sell this to your pension (get cash out your pension before your 55) and then charge your company big rent from your pension (again tax writeoff for the company and tax free for you when drawn) fund. If your fund doesnt have enough equity it can borrow upto 50% of its pot as well.

Added protection if you need to bump the company then the yard is protected as its owned by your pension comp.

Can also extract cash from he pot before 55 by selling the pension shares in your company.

Lots of angles that can work to your advantage, need to find the right advisor same as finding a good accountant that will walk the line but not cross it, too much anyway.
I thought a lot of those loopholes had been closed with regards to SIPPs?
 
V8Druid

V8Druid

do it as well as you can,but learn to do it better
You are obviously too young to get it. The Who (popular band back in the day) used to sing about hoping to die before they got old.
bit of an understatement that Gra :oops::rolleyes: ... one of the best
They also started a trend for grown arse men riding scooters rather than proper motorbikes...
nah they were all kids ;) .... "even God rode a Triumph" :giggle::LOL:
 
R

Rob 210

Active member
my pension plan,or at least it will probably turn out this way:)

 
L

Lynchy

Well-known member
Was with royal London till redundancy,put couple pensions into a sipp,after two months.....increased by X10 over the amount RL did all last year
 
L

Lynchy

Well-known member
Found last of three pensions today....provider managed to reduce value by 20% from Oct '19 to April '20,and charge for the privilege......straight into sipp thank you...
 
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