benjaminfabi
About
- Username
- benjaminfabi
- Joined
- Visits
- 3,229
- Last Active
- Roles
- Moderator
Comments
-
Gains on the sale of gilts are not chargeable gains. No personal liability to capital gains tax. No company liability to corporation tax. https://www.gov.uk/guidance/gilt-edged-securities-exempt-from-capital-gains-tax https://www.legislation…
-
@Wildparaplanner said: Those Innovative Finance ISA numbers really do strike home how terrible a solution it is! IF ISA was nothing more than a mechanism to get p2p lending into ISAs when it was looking like becoming a 'mainstream' saving…
-
@les_cameron does that mean you don't need LSDBA to pay tax-free cash with an EP certificate?
-
Yes I did comment somewhere else that this wasn't really a new thing, just a reinstatement of previous restrictions on cash in S&S ISAs. Pretty sure Osborne threw that lot out. But the entire policy is mad to start with: * Most under 65s…
-
How is this entire cash ISA limit not clear and obvious age discrimination?
-
Hi, Because LSDBA is the value of rights in April 2024, and they'll need to evidence that the member has enough LSDBA remaining to cover the payment of the tax free lump sum. Only the death benefit bit of LSDBA falls off at age 75. That would …
-
You'd need to ask the scheme administrator. Them knowing the person isn't relevant if the scheme is paying an 'arm's length' commercial rate to a professional for the work being done. But a RICS Red Book valuation is related to property, not private…
-
My understanding is that: * You need LSDBA to receive a SALS. * It will use up LSDBA 1:1 and LSA at 0.25:1 * But you don't need LSA to receive a SALS. * What would happen is if you had, say a £250,000 SALS and a £1m SIPP, and you took t…
-
Here's what I think... If the scheme specific protected tax free cash in an uncrystallised scheme, then it's available even with no LSA, but would use up LSDBA. If it was 100% of the fund at A-Day, then it isn't a SSPTFC sum, but it's a Stand …
-
To give HMRC its due, the annuity probate calculator does state: This calculator will estimate the open market value of the guaranteed annuity payments which are to be paid to the estate in straightforward cases. HMRC considers that the values p…
-
Hi, From what I understand... A joint life annuity has no IHT value on first death (assuming in good health when established). Value protected annuity the protected value on death is the amount in the estate. Guaranteed period annuity the p…
-
Thanks, and noted on terminology! I'd used them synonymously but I suppose there is a technical difference. In theory, however, HMRC still assume someone is not in poor health if they survive two years from the annuity purchase, even if they've r…
-
Okay thanks. So let's consider this scenario: * Annuity purchased for £200k, providing £12,000 level income(monthly in arrears) with a 20 yr guaranteed period. * Annuitant dies 35 days later. * HMRC probate valuation calculator assuming death…
-
I always ask for submitted tax returns and pension contribution histories when I do taper calculations. Clients frequently don't know what of the income is taxable (gross rent vs taxable rental profit being a common example), and in this case the sh…
-
@Wildparaplanner thanks for following up this is very useful!
-
I think both your scenarios are right but there's a step between them that deleted the first one on 6/4/2024. i.e. today you're left with an LSA of £0. And, as I have commonly seen - a hard query with someone about why a small crystallisation was…
-
Hi, Any pre-2006 pensions in payment, including capped DD, were tested at the first BCE that took place after A-Day. That uncrystallised fund that got tested at age 75 (2019) will have triggered a BCE on the drawdown fund under the rules in fo…
-
The client will get tax relief on the contribution whether he has carry forward or not. Having carry forward to cover the excess £5k will stop the annual allowance tax charge applying later in the tax calculation to claw it back. So yes, the clie…
-
No worries. This topic is always difficult because it's hard to bring everything down to the two simple transactions: * Has money come out of a pension as PCLS. * Has money gone into a pension as a contribution. Nothing else around why the…
-
That's irrelevant. The test is related to whether tax free cash has been taken from my pension and whether pension contributions have been made to my pension. And then, whether the contribution/s are allowable based on the recycling tests. Con…
-
In which case if you recommend this strategy and the quantitative tests are met, it's going to be pcls recycling. Unless you take from Mr now and fund Mrs from the company, or vice versa. You can only recycle into a pension you are the member o…
-
> @Wildparaplanner said: > Perhaps a phased approach (e.g. Phased Flexi-Access Drawdown) to meet their monthly outgoings would be less grey? That way, you have a direct link to spending, and presuming an income source will reappear once the …
-
I'm confused. Isn't the current cashflow issue solved by pcls from existing pensions?
-
@GolfPutt21 they have money in the existing pension now, which a pcls solves personal cashflow. They will have money in the company when the property is sold. They can take that money out of the company other than via a pension eg as a dividen…
-
Without knowing anything other than what you've disclosed I would say that, based on the figures you're talking about, all the quantitative tests will show this is recycling. The remaining test is whether it was 'pre-planned'. It seems to be that…
-
@Radnor I agree with this. Contributions can be added by anyone with the account number, but they can't open the account or control it. @GolfPutt21 There are a few very good reasons to stick with a GIA, including: * Contributions from grandp…
-
Yeah thanks, that was my track, and that any additions he makes to the collection will be regular spending if it becomes a pattern.
-
Basis of discretionary management agreement [DIM] will manage your investments on a discretionary managed basis. This means that your portfolio will be managed without the need to advise you every time an underlying change is made. The benefits a…
-
Hi Not sure what you'd define as 'proper' reporting, but in my experience platforms aren't built for the information needs of corporate investors. When investing for corporates we try to use single asset funds, using income units. Keeps it cle…
-
@GolfPutt21 It isn't a simple question and confusion is understandable. Employer pension contributions aren't limited - full stop. But to obtain corporation tax relief they must pass the 'wholly and exclusively...' test @PippaO mentioned. So a…