Century Fm This Morning - Laughing So Much I Nearly Crashed!

[teddyboy]

Anyone in the NW area that gets Century FM will have heard a guy this morning on the radio talking about the fact that we will need to work till 67 because of under-performing pension investments. This guy is just a listener - not an expert btw.

He informed us that he took out his pension (he's 52) and opted out of SERPS. He was informed on the last statement that they had a BAD YEAR and his fund was £8,000 DOWN. Now I was NOT LAUGHING HERE. This is terrible i.m.h.o.

He then muttered them immortal words "I have bought a second property - that is my pension now".

The conversation then went as follows:

DJ: "Yeah - but then they will take 40% of that for Capital Gains Tax"

CALLER: "eh?"

DJ: "Yes unless the house is lived in - its regarded as a second income and therefore is eligible for CPT"

CALLER: "Well I dont know about that"

DJ: "Its true - the government seem to take money off you for everything nowadays"

CALLER: "Would it matter if I said I had bought it for my mother?"

DJ: "Are YOU going to live in it?"

CALLER: 'No"

DJ: "Well its a second income"

CALLER: "Well after hearing that, I will have to re-assess where my pension is coming from"

YET ANOTHER IDIOT THAT THINKS THEY CAN BUY A PROPERTY - DO FECK ALL - AND BECOME A MILLIONAIRE OVER NIGHT!!!!

As Delboy would say "what a plonnnkaaaa!!"

TB

Edited November 22, 2005 by teddyboy

[Serpico]

That's whay always make me chuckle about Sarah Beeney's programmes they talk how much profit they have made but never mention CGT.

[SarahBell]

So is his pension the rental income he'll get from it or a cash lump sum from buying it? And why would capital gains be payable on the rental income?

I *assume* that it isn't but I'm not up on all this sort of stuff at all.

[MarkG]

So is his pension the rental income he'll get from it or a cash lump sum from buying it?

Why would anyone buy a house to rent out at current prices, unless either a) they're a slum-lord who'll stuff it full of low-paid immigrants or they're expecting massive price inflation?

It's not as though most BTLs in the last few years have been buying for rental income: a few thousand a year in rent is irrelevant compared to 50k a year in price inflation.

Edited November 22, 2005 by MarkG

[Flash]

It makes you wonder how many are attempting to wriggle out of paying Capital Gains Tax when the asset is sold, by just hoping that the Revenue will not notice.

[FTBagain]

It makes you wonder how many are attempting to wriggle out of paying Capital Gains Tax when the asset is sold, by just hoping that the Revenue will not notice.

I suppect that there are a lot of people who have been hurt in one area in investment and jumped in a fit of angerout of the frying pan into the fire, without looking. Lots will get hurt when the Revenue wake up to this issue. (Personnally I recon there will be enough old hacks at the revenue to know what is happening and will be plotting there moves!)

There will be much knashing of teeth and squeeling before this is all over.

[Killer Bunny]

That's whay always make me chuckle about Sarah Beeney's programmes they talk how much profit they have made but never mention CGT.

Technically these guys would be income taxed as its their trade