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Savings and Investments thread
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Pensions falling into IHT from 2027
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Unless there is something in the small print, she hasn't done anything to ISAs has she?1
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Or be ok with contributing to a crumbling society? Why is that so bad?Rob7Lee said:NI the big one, £25bn!
Thought CGT was going to be worse TBH.
2% more for second homes has just killed any entry to BTL - sorry for anyone renting, your rents will be going up even more.
Disappointed (but not surprised) to see pension now fall into IHT - Sounds like I need to spend spend spend or leverage a lot of debt.0 -
They won't be touching my pension.Covered End said:Pensions falling into IHT from 2027
That £30 is in me pocket6 -
In theory, were I to die after Apr 2027 but before i've retired/collected pension my estates IHT bill has likely just gone up north of £500k, so apology for being disappointed! But as I say, not surprised and there are ways to reduce this to a degree.Stu_of_Kunming said:
Or be ok with contributing to a crumbling society? Why is that so bad?Rob7Lee said:NI the big one, £25bn!
Thought CGT was going to be worse TBH.
2% more for second homes has just killed any entry to BTL - sorry for anyone renting, your rents will be going up even more.
Disappointed (but not surprised) to see pension now fall into IHT - Sounds like I need to spend spend spend or leverage a lot of debt.0 -
Looks like we'll have to spend spend spend!Covered End said:Pensions falling into IHT from 20271 -
The FTSE 250 and AIM like the budget. FUD worked and they were over-sold.
What's interesting is that this is a Liz Truss budget - borrow heavily to invest (although, she also spunked a lot on the energy cap). But they have the OBR in their pocket. Hunt looks like a right mug.1 -
Can someone explain what this means/how this actually works please?Covered End said:Pensions falling into IHT from 20270 -
Can answer my own question .Fortune 82nd Minute said:Unless there is something in the small print, she hasn't done anything to ISAs has she?
Small print says the amount you can currently pay into an isa stays the same until 2030. I'm amazed.0 -
As it stood, were you to die before 75, your pension pot (i.e. SIPP, not and DB scheme) passed to your survivors tax free. Now it will simply form part of your estate and be added to the overall estate.meldrew66 said:
Can someone explain what this means/how this actually works please?Covered End said:Pensions falling into IHT from 2027
I.E. if you were single and had a home worth £400k and £100k in the bank your estate would not pay IHT as at the £500k limit. Now if you have to include say a £350k of pension pot on top you are now £350k over the limit and the estate would pay £140k in IHT.3 - Sponsored links:
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CGT for basic rate taxpayers up from 10% to 20%
For higher rate taxpayers up from 20% to 24%.
FROM TODAY.
Buggers my clients who move money from Investment funds into their ISA's before the end of the tax year.
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Does surprise me that there were NO changes to Pensions apart from now being part of your Estate.
Tax free lump sum untouched
Tax relief untouched.
Lifetime & Annual allowances untouched1 -
Rob7Lee said:
Looks like we'll have to spend spend spend!Covered End said:Pensions falling into IHT from 2027Was always my plan anyway, so nothing changes.I have absolutely no issue in pension being included in an estate, it's an asset and no different to savings or property or shares. It's the change from not being included to being included that smarts.Just spend it ffs!4 -
Rob7Lee said:
As it stood, were you to die before 75, your pension pot (i.e. SIPP, not and DB scheme) passed to your survivors tax free. Now it will simply form part of your estate and be added to the overall estate.meldrew66 said:
Can someone explain what this means/how this actually works please?Covered End said:Pensions falling into IHT from 2027
I.E. if you were single and had a home worth £400k and £100k in the bank your estate would not pay IHT as at the £500k limit. Now if you have to include say a £350k of pension pot on top you are now £350k over the limit and the estate would pay £140k in IHT.
It would be £325k, not £500k if one assumes that a single person does not have a direct descendant (child/grandchild) to leave it to.
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The 2nd property Stamp duty increase was a big'un. Again comes in immediately.
Imagine that might be adding to people's costs who are moving this Friday.0 -
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@golfaddick nieces and newphews who have no parents alive1
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Fortune 82nd Minute said:Unless there is something in the small print, she hasn't done anything to ISAs has she?
As per the full Budget report at https://assets.publishing.service.gov.uk/media/672232d010b0d582ee8c4905/Autumn_Budget_2024__web_accessible_.pdf
“5.58 Individual Savings Accounts, Lifetime ISA, Junior ISA and Child Trust Fund
Allowance – Annual subscription limits will remain at £20,000 for ISAs, £4,000 for
Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2030.”
“5.61 British ISA – The government will not proceed with the British ISA due to
mixed responses to the consultation launched in March 2024.”
I can find no mention of a cumulative ceiling but it does mean that there will be no adjustment to allow for inflation to the annual limit until at least 05 April 2030.
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Don't understand the figures. I thought the speculation was 2% extra and would raise £20bn. Am I wrong?Rob7Lee said:NI the big one, £25bn!
Thought CGT was going to be worse TBH.
2% more for second homes has just killed any entry to BTL - sorry for anyone renting, your rents will be going up even more.
Disappointed (but not surprised) to see pension now fall into IHT - Sounds like I need to spend spend spend or leverage a lot of debt.0 - Sponsored links:
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Ok.......but that is not likely to affect many people.SE9toDA2 said:@golfaddick nieces and newphews who have no parents alive
And in that case you/they have over 2 years to address this. Start taking money out of the pension & spend it or give it to them directly. Or put the pension into Trust with them as beneficiaries.1 -
@golfaddick If take money out then will pay tax and Sliding scale IHT if die within 7 years of donation
what I find strange is that you have a contract with a private company with terms and conditions that you have invested into over a number of years that the government just amend to suit them. There should be more transitional arrangements0 -
Correct, but an extra £175k if leaving home to descendants making £500k.SE9toDA2 said:@Rob7Lee if you were single your allowance is £325k not £500k assuming you have no children.
so you would pay IHT on £175k plus the pension pot of £350k in your example from 2027
redman said:
2nd (or more) homes currently attract 3% extra stamp. From tomorrow that’s 5%. We completed on a house last week, timing!!
Don't understand the figures. I thought the speculation was 2% extra and would raise £20bn. Am I wrong?Rob7Lee said:NI the big one, £25bn!
Thought CGT was going to be worse TBH.
2% more for second homes has just killed any entry to BTL - sorry for anyone renting, your rents will be going up even more.
Disappointed (but not surprised) to see pension now fall into IHT - Sounds like I need to spend spend spend or leverage a lot of debt.0 -
I agree, just changes my IHT planning. Will likely mean I retire earlier to give me a chance to spend it! Every cloud……bobmunro said:Rob7Lee said:
Looks like we'll have to spend spend spend!Covered End said:Pensions falling into IHT from 2027Was always my plan anyway, so nothing changes.I have absolutely no issue in pension being included in an estate, it's an asset and no different to savings or property or shares. It's the change from not being included to being included that smarts.Just spend it ffs!0 -
A budget to kill growth.5
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If you are a basic rate taxpayer you will pay 20% income tax (over the 25% Tax free allliwance) on withdrawals (up to the 40% threshold). All depends on what levels of tax you pay.SE9toDA2 said:@golfaddick If take money out then will pay tax and Sliding scale IHT if die within 7 years of donation
what I find strange is that you have a contract with a private company with terms and conditions that you have invested into over a number of years that the government just amend to suit them. There should be more transitional arrangements
And the contract you have with your pension provider hasn't changed at all. Governments regularly move rates & levels of reliefs.
In a way they are just balancing up an anomaly. No real justification on why pension assets should be outside of your Estate when all other assets are included.1 -
City not impressed by the looks of it!
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The OBR have been quite strong on their thoughts. Less growth, higher inflation than the BOE forecast & subsequently slower cutting of interest rates.Hartleypete said:A budget to kill growth.0 -
....good for savers then?!golfaddick said:
The OBR have been quite strong on their thoughts. Less growth, higher inflation than the BOE forecast & subsequently slower cutting of interest rates.Hartleypete said:A budget to kill growth.0 -
Don’t give them ideas Golfie, might come in the next budget!golfaddick said:Does surprise me that there were NO changes to Pensions apart from now being part of your Estate.
Tax free lump sum untouched
Tax relief untouched.
Lifetime & Annual allowances untouched0
