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TAX Tax Systems

112.50
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Tax Systems LSE:TAX London Ordinary Share GB00BDHLGB97 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 112.50 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Tax Systems Share Discussion Threads

Showing 1351 to 1375 of 1775 messages
Chat Pages: Latest  59  58  57  56  55  54  53  52  51  50  49  48  Older
DateSubjectAuthorDiscuss
02/4/2014
15:22
Hi miata,

I'm currently renting in the UK (between houses, happy to wait until I find 'the right one')and own outright a house overseas.

I'm UK resident for tax purposes, spending approx 4 months of the year here and under 6 months at my overseas address, the balance being in 3rd countries.

Is my overseas (and currently sole) property acceptable as PPR for CGT purposes on an eventual sale ? My instinct says 'no' but the tax world can be a funny place !

TIA

extrader
02/4/2014
14:54
BT - think I'll be switching to Flexible next year.

MIATA - Prayssac just 25/30mins due East of us. We are at Montagnac-sur-Lede; c6kms due East of Monflanquin.

We go to the pepinieres at Prayssac; and pass through to visit Mme Murat's "rustic" restaurant at Pomarede. People speak highly of the weekend Market there.

Do you live in the area - if so, perhaps we could meet up sometime...

skyship
02/4/2014
11:49
Doing it in stages is flexible drawdown.
miata
02/4/2014
10:25
thanks for the reply...i am referring only to matters from 2015 when despite not having the 12k guaranteed amount will still be able to take what i want from my pension pot (currently in income drawdown) and doing that in stages to avoid the 40% tax rate
badtime
02/4/2014
09:32
No. The new arrangements just make flexible drawdown more flexible and available to those on a lower guaranteed income. It remains a way of not paying higher rate tax on withdrawing funds from larger pension pots.

Until April 2015 only savers whose total pension savings amount to £30,000 or less – rather than £18,000 – will be able to take the entirety as cash ("trivial commutation"). This will be taxed at marginal rates. Note that 'total pension savings' includes any company pension income grossed up to a capital value.

If you have say a pot of £100,000 you would probably take £25,000 tax free and leave the rest in flexible drawdown, ensuring the amounts you took out annually kept you within the basic rate tax band.

The Red Book does show that the Treasury expects to get large amounts of tax from people encashing their pension pots.

miata
02/4/2014
08:59
Isn't the flexible drawdown going to be superseded by the new arrangements for being able to take your 'pot' next year anyway
badtime
02/4/2014
06:28
Second home owners could face a significant tax charge on gains made from the sale of their properties after the Treasury moved to limit 'flipping' of primary residences for tax purposes.

Officials are consulting on a change that would mean UK residents with two homes would no longer be able to elect a main residence that is exempt from capital gains tax. Instead the main residence would be decided by HM Revenue & Customs.
Currently, those with more than one property have free rein to elect any of them to qualify for 'private residence relief'. This relief means profits they may make when they sell it are free of CGT.

The rules as they stand give relief from tax on profits made in the previous three years. This has allowed owners of multiple homes to 'flip' their main residence so that more than one qualifies for the relief and they can reduce the tax charge when they sell. The election must be made within two years of acquiring the second home. Landlords cannot elect a rental property to be their main residence.

The Government has already moved to reduce the relief, announcing in December's Autumn Statement a cut to the grace period from three years to 18 months, coming into force from 6 April. However, a Treasury and HMRC consultation paper on the treatment of non-residents, published last week, contained proposed changes that would also change the rules for UK residents.

The Government wants to make non-residents pay tax on their UK property profits for the first time. To do so, it needs to remove the ability for non-residents to elect a UK home as their main property, as would be possible under current rules. However, it also means removing it for UK residents.

No one has to pay CGT on their home so anyone with just one house will never pay it when they sell. Those with two or more will pay the tax on profits from sales of properties other than their main residence.

The change will be significant for those with two homes, according to Patricia Mock, a tax director at Deloitte. She said: 'Lots of people in this position change the election of their main residence to whichever they feel will be sold at the bigger gain. 'Changing this will be significant and will create a lot of extra work for the taxman. It's not exactly clear how they will keep on top of it. Imagine a situation where a person lives in London for the week but in the country for the weekend, it would be a big ask to keep records to show where is being used the most.' Officials have proposed two ways to decide a persons main residence. The first removes the ability of individuals to elect a property with the HMRC instead making the decision based on all the available facts.
This process is already used by the taxman where individuals make no election of their main residence. The decision is not based solely on where an individual spends their time, but also factors such as where children live and attend school, where the individual is registered to vote, which property is the contact for bank and utility correspondence and where the person is registered with a doctor. The second proposed method would be based on how an individual splits their time, with main residence status given to the home where they have been most present for any tax year. This second method could require individuals to keep different or additional records, officials admitted.

miata
01/4/2014
14:51
Thanks Miata for 1218
red nutter
01/4/2014
14:37
How far are you from Prayssac (just curious)?
miata
01/4/2014
14:27
MIATA - thnx for that

I would be leaving it in the SIPP and continuing to manage it.

At the moment I drawdown 7%pa & that will go up to c8.75%pa on my Review in a week's time.

I have no need to draw down any more than that; however I just thought that switching into the Flexible version does just what it says on the tin - ie gives me the flexibility to take a chunk taxed at my marginal rate should there be some form of family emergency.

Most people would cover that with their invested capital; but we don't have that having put all capital into buying and converting our retirement home here in SW France. No regrets as easily sufficient pension income!

skyship
01/4/2014
13:41
The advantages of flexible drawdown
The tax-free lump sum can be taken
Flexible drawdown allows income to be varied, with no maximum
You don't have to decide on whether to include spouse's benefits or other such options with a flexible drawdown contract
The fund can remain invested - so it could grow further
You can take the entire fund in one go
Any remaining fund can be passed on in the event of death

The disadvantages of flexible drawdown
Any ongoing income/or fund left invested is not guaranteed and could go down
Withdrawals are subject to tax, if you withdraw large amounts (say £30k+) you will be taxed at 40%
Costs can be high, especially for smaller funds
Where do you invest money withdrawn that is not spent?
You can't really pay into a pension again

Clearly with larger ISA limits you may be tempted to move some funds into ISAs, but of course the net of tax sum will not grow as large. However, a future Labour government could repeal this new freedom and you might not be able to access the pension capital in future.

If you think you might need government help with care home fees, ISA funds would be counted whereas pension funds would not (I believe).

The real question is why do you want to take the fund?
If you have a particular need (kids house etc) then it may may sense to take it and avoid future (rising) fund management charges, particularly if it is a small fund that doesn't push you into higher rate taxation.

miata
01/4/2014
12:44
MIATA. Another Pension changes Q:

I am in Income Drawdown mode; and now qualify for Flexible Drawdown from Apr'15 due to the lowering of the threshold to £12,000.

What advantages are there to the flexible mode; and are there any disadvantages?

skyship
31/3/2014
13:36
1) Yes, for PAYE.



HMRC have a Youtube video for the less intellectual


2) Merely by paying in excess of the NI annual threshold. NI will become payable. Even minimal NI payments are sufficient for a full year's pension entitlement.

3) You will give your company's P45 to your new employer.

Consider making the first payment large as HMRC may put you on full 40% deductions tax code with no annual allowance as you are a director. (This just means you loan them money until they sort things out - which won't be quick).

2014/15
NI Lower Earnings Limit class 1 £111pw. Primary threshold £153pw.
Employees class 1 - 12%, Employers class 1 13.8%.

Employer guide to PAYE & NICs. (The 100 page elementary introduction to the task ahead of you, congratulations if you master this starter pack, there is lots more to learn !!)






Alternatively Google 'payroll services' and let someone else sort it out.

miata
31/3/2014
13:07
Hi,

I am trading as a ltd company and want the easiest way (least hassle) to pay myself a salary for 2014/15 considering that I am unsure if will be trading for the full year.

I am planning to pay myself a min salary of £7956 for the year, £663 per month. The rest I will pay in dividends to myself if necessary.

Questions:-
1) Do I have to register as an employer?
2) Do I need to make any voluntary NI contributions to maintain state benefits including NHS and state pension. If so how?
3) What happens if I stop trading and then I take up a full time job who pay me through PAYE. How will they work out that I have used part allowance for the year and what documents should provide them so that they can work out my tax code.

Thanks

red nutter
30/3/2014
14:52
Thanks Miata.
goatherd
30/3/2014
12:29
MIATA - thnx for yr advice given over on the FTAX thread. Sippdeal have admitted their mistake and will after all give me the 150% GAD rate on my 6th April Review.
skyship
29/3/2014
11:37
Your pension/SIPP provider will claim the tax rebate from HMRC.

Firstly people earning less than £3,600 a year can get that amount annually into a pension pot. Secondly there are carry forward provisions for the use of unused pension relief (eg for those who have just stopped working). The value of all pension savings is measured over a period of time called the pension input period (PIP). This period usually covers 12 months but doesn't have to match the tax year.

miata
29/3/2014
11:23
Miata,

Interesting, thank you.

But how does someone whose income is below the personal allowance get the £2,000 tax relief added, please? [I am a total novice about pensions!]

goatherd
29/3/2014
10:21
Treasury sources have stated that the facility whereby people over 60 who can pay £8,000 into a pension get £2,000 added as tax relief making the pot £10,000 which can be immediately cashed-in at a profit of £500 (£2,500 tax-free plus £7,500 taxed at 20% equals £2,500+£6,000=£8,500) will be closed next year.

(The profit is larger for higher rate taxpayers and for people (eg no longer working spouses) whose income is below the personal allowance.

miata
27/3/2014
14:24
Small private pension pots.

From today (27th March 2014) if you are over 60 and have a pension pot worth no more than £10,000 you can take all the money in that pension pot as a (taxable) lump sum. You can only take a lump sum 3 times under this rule.

How your lump sum is taxed
If a lump sum is paid instead of a small pension before you started to get that pension, only 75 per cent of the lump sum is taxable. If you were already getting the small pension but have turned it into a one-off lump sum instead, the whole lump sum is taxable.
Your scheme administrator will deduct any tax due at the basic rate of 20 per cent using Pay As You Earn (PAYE) and should give you a P45 showing how much tax has been paid.
The amount of tax you pay depends on your total income for the tax year. Even if you normally pay basic rate tax at 20 per cent, you may still end up paying too much tax on your lump sum. If this applies to you, or if you normally don't pay tax at all, you can claim back the overpaid tax from HM Revenue & Customs (HMRC). If you're a higher or additional rate taxpayer you may need to pay more tax through self assessment, as the tax on your lump sum will only have been deducted at 20 per cent.

miata
22/3/2014
20:56
Thanks Miata. As far as I can make it out, these are the rules right now:

If your total pension pot is less than £18,000 you can take it in cash (although there will be tax to pay).
Things get more complicated if you have two or more pensions with some in payment already.

If the pension in payment started after 6th April 2006 a nominal value is calculated as 20 times the annual payment, plus any lump sum which was paid at the start. This is added to the pension you want to commute and if the result comes to more than £18,000 you can't do it.
If the pension in payment started before 6th April 2006 then the nominal value is calculated as 25 times the annual payment. Otherwise as above.

From March 27th this year, the figure of £18,000 will change to £30,000 but otherwise the rules will stay the same.

Looks like I am going to have to wait for April 2015 to get my hands on my little private pension fund!

If anyone does not agree with my simple minded summary above please tell me!

obbig60
22/3/2014
20:10
pity that eh Smarm :)
badtime
22/3/2014
19:44
Extensive Standard Life Q&A blog on the changes:
miata
22/3/2014
19:13
Miata - re grabbing pot - when I posted I had forgotten about the marginal tax rate!! Doh.
smarm
22/3/2014
17:14
I doubt it (my expertise covers tax but not pensions), but here are a few relevant snippets:

Legislation will be introduced in Finance Bill 2014 to amend FA 2004 to:
• allow members over 60, with total pension savings of £30,000 or less to take out all of those savings as one or more trivial commutation lump sums.

The rise in the trivial commutation limit applies to all commutation periods starting on or after 27 March 2014. The rise in the amount that can be taken as a taxed lump sum from other small pension pots, and the number that can be taken, applies to all payments made on or after 27 March 2014.

The current (22nd March) trivial commutation lump sum limit is £18,000.

The detail (not in words of one syllable I'm afraid) is in The Registered Pension Schemes (Authorised Payments) Regulations 2009 (SI 2009/1171).

miata
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