Llb,You missed off above inflationary increases in VED, alcohol and tobacco duties, insurance and travel levies, etc. |
the age for accessing pension has already been increased to 57 from April 28. Will it be pushed back further to 60 as it was before? |
Good point fenners66 - the 5 year v 30 year issue.
I can see that a government would look to the five year lifecycle and take your point that raising access age would be a short term tax reduction.
I'm trying to think what may pop out in the end of Oct budget, and if possible, reduce my exposure.
Bit like trying to guess which raindrop will hit the bottom first. |
Nice hammer off resistance let's see if we end up blue |
lippy4 MCunliffe said that...
MC - the original govt paper on allowing age 55 access to pension pots included a section on expected tax revenues as a result.
The forecast was to accelerate tax revenues in the early years.
Since a govt can only really look forward 5 years they are focused on short term gains rather than the wider long term picture.
Pushing back drawdown may raise more tax over the next 30 years or so , but it would reduce tax receipts now.
Mind you Labour is quite capable of making stupid self harming decisions.... |
but a part civil of service pension can be carried on to the wife or husband though.. |
Only for the time being abc_001.
I recently updated my will and the solicitor confirmed that my pension, upon my death, passes to my named beneficiary (my wife) and does not form part of my estate for IHT.
The point I was making though is this can change if the government of the day so chooses.
I see a massive technical difference between my SIPP and a retired civil servants gold-plated pension. I have complete control over my SIPP; I select how I invest the pot and can even drawdown some/all of that pot. The civil service type 'pot' cannot be manipulated by the benefactor and probably doesn't exist as a defined pot in the sense that my SIPP does.
Therefore, how easy for a government to decide that pensions such as mine will indeed be counted for IHT whilst the civil service type, not really existing as a physical pot of money, cannot be counted as part of IHT as the benefits cease upon the benefactors death (allowing for widow's reduced payment perhaps). |
Can we hold support at 2800p, if not next support 2775p. |
Your pension is held in trust and outside of IHT |
Also, increasing the age at which pensions become accessible would force people to continue working for longer, which is another thing they want. Of course they would be paying more taxes while working, whereas once they start drawing their pension they only need to withdraw what they need and so pay less tax. Ideally (for the government) everyone would croak the day before they become eligible for state pension. That way they get the maximum amount of work and tax out of you, and get 40% of your savings after you croak. |
 If the drawing of pension is delayed a larger amount will be sat in there when you do start to draw and, less time in which to draw presuming no other factors affect your longevity.
Couple this with counting any remaining pension pot as part of your inheritance and larger pots will push more into the IHT bracket.
Labour will want access to your pension pot one way or another. The one thing they cannot get away with is a straight theft of a portion of the value of your pot - say, 2.5% each year.
In addition, I've been a low-earner since I was 50. To be fair, I'd saved into a variety of places including S&S ISA and Prem. Bonds. My biggest single asset though is my SIPP and I have been drawing down from that each March for several years. This has allowed me to transfer quite a bit of the pot value to other, accessible and tax free savings such as cash ISA's.
Now, with the full (new) state pension and with the tax allowance retained at £12,570 it is not possible to draw down more than about £3k without incurring a tax payment.
Had I been forced to wait until I was 60 or even older before drawing down I would have transferred far less out of my pot, it would be considerably larger and we're back to the IHT scenario.
I therefore feel they WILL raise the age at which access to your pension is permitted on the basis that pension payment age is also rising. |
Bats looking like 2775p before ex div then 2725p after ex div. Still we had a good run up with dividends on the way. |
We might as well leave U.K. |
Here is my October budget tax raid list of targets, how many get hit we will have to wait and see..
1 - IHT thresholds
2 - CGT thresholds
3 - SIPP contributions tax relief
4 - SIPP 25% LSA tax free draw down limit revised..?
5 - SIPP 25% draw down age increased..?
6 - LTA limit reintroduced at ..? (GBP1.073M)
7 - PSA tax free limit £1,000 on interest revised down..?
8 - SDLT thresholds for larger properties
9 - Mansion tax
10 - Council tax 25% discount for single occupancy revised..?
11 - ISA allowance / ceiling / cap on income..?
12 - Fuel duty escalator reintroduced + 5/10ppl..?
13 - VED rates, or are we moving to tax per mile instead next..? |
Makes sense. |
MC1 don’t really see why RR would delay access to pension pots as it would just delay drawings and therefore potential taxes. |
The 6 month TA chart trend support line is around 2600-2700 pence, will it pull back that far after XD is something we will have to wait and see, IF it does there is your buying opportunity with the dividend in the bag..
235 pence a year dividends paid quarterly is hard to trade around so I do not, just hoover up the income and use that to add or buy else where..
3000 would have been nice to see, but just a CG on the screen to look at not crystallize.. :o) |
Is 2750p on the cards, before ex div or after ex div, that is the question. |
May be more than five years nemesis6 if Reeves changes rules on age you can access your pension pot. |
its in my SIPP...so not the end of the world will be at least 5 yr till i have access |
Drop I suspect.
If you hold as part of a balanced portfolio I don't really see the issue here. Sure it would be great if it got to 3000 pre divi but as a long term holder I am happy to bank the divi and see others doing well while this falls a little.
Good luck all 👍🏻 |
gulp what a drop....whats it gonna do on exdivvi day? |
With US interest rate moving down plus bigger rate cut yesterday , BATs will definitely moving down fast , very soon under £28 due to US$ exchange rate against £ . |
I have bought my final lot of bats shares this morning. Strictly buying no more as getting overweight here. Xd next week. |
Back In for Divi and the reverse I hope |
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