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OnlyMe

Stuck With A £200,000 Flat And No Tax Relief

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Can one assume that Mr Ward actually had earnings in excess of £200K and was indeed entitled to put £200K+ worth of income into his SIPP in the first place????!!!!!

SIPPS / property - can of worms from the start, even bigger can of worms now.

http://business.timesonline.co.uk/article/...1910860,00.html

Stuck with a £200,000 flat and no tax relief

Christine Seib

JULIAN WARD is one of thousands of investors who planned to pour as much as £8.5billion into the British housing market on the back of a generous tax break on residential property.

Instead, after the Chancellor’s dramatic turnaround yesterday on what investments would receive tax concessions in self-invested personal pensions (Sipps), Mr Ward is stuck with a £200,000 second property and has missed out on tax relief of up to £102,000.

The 40-year-old mortgage broker recently completed the purchase of a two-bedroom flat in Colchester with the intention of putting it into a Sipp.

He hoped eventually to add to his property portfolio, which includes a family house in Kent, with a holiday home that he also planned to put in the Sipp.

Yesterday Mr Ward described the Treasury’s U-turn on Sipps as “very disappointing” and said that it had soured his views on pensions even further.

“I still think putting your money into property is the most sensible thing to do but now I’ll be 40 per cent worse off,” he said. “The idea of having a property but getting pension tax benefits was fantastic.

“Now I’m just not going to open a pension, although I will keep the personal pension I have from a previous job.”

Mr Ward said that he was persuaded to buy a property to put in a Sipp by “hype” from the media and financial services industry. “I was influenced by the positive spin that was put on it by everyone,” he said. “You can’t just blame the Government, The Treasury has back-tracked on its own rules that, from April 6 next year, would have allowed savers to buy residential properties and other exotic investments with their Sipp, to take advantage of tax breaks of up to 40 per cent on the purchases.

Edited by OnlyMe

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http://business.timesonline.co.uk/article/...1910860,00.html

Stuck with a £200,000 flat and no tax relief

Christine Seib

The 40-year-old mortgage broker recently completed the purchase of a two-bedroom flat in Colchester with the intention of putting it into a Sipp.

“Now I’m just not going to open a pension, although I will keep the personal pension I have from a previous job.”

It sounds as if he intends to keep the flat, but he does have the option to sell it and put the money into a SIPP, choosing allowable investments to make sure he gets the tax relief. He would lose out on transaction costs though.

I wonder how many will sell the properties that they hoped to put into a SIPP? Or will they just hang on to them and go around saying things like "it's my pension, so I'm in it for the long term"?

Edited by geranium

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At this point, I would like to make a carefully considered economic point...

But I think I'll just laugh at "poor" Mr Ward instead :lol::lol::lol: A mortgage broker too :lol: can anyone please find me one with an EA in it!!

Mr Ward - Get it right up ye!!!

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“I was influenced by the positive spin that was put on it by everyone,”

Doesn't that sound familiar? I suspect that phrase is going to appear a lot more in the coming years.

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If Julian Ward the "Mortgage Broker" believed in the "hype" from the "Media" and "Financial Companies"(his own chosen 'professional field') - just imagine how much "brainwashing" IS going on! :ph34r:

If VI's repeat something often enough - sheeple just believe its all true! :o

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Guest The_Oldie
If VI's repeat something often enough - sheeple just believe its all true! :o

They seem to don't they :unsure:.

I think the theory is that if you say the same thing often enough and in as many different places as possible, the desired piece of spin enters the sheeple's subconscious.

Once brainwashed in this fashion, they will continue to spend until all funds and lines of credit are exhausted.........not long to wait then ;).

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Can one assume that Mr Ward actually had earnings in excess of £200K and was indeed entitled to put £200K+ worth of income into his SIPP in the first place????!!!!!

SIPPS / property - can of worms from the start, even bigger can of worms now.

http://business.timesonline.co.uk/article/...1910860,00.html

Stuck with a £200,000 flat and no tax relief

Christine Seib

JULIAN WARD is one of thousands of investors who planned to pour as much as £8.5billion into the British housing market on the back of a generous tax break on residential property.

Instead, after the Chancellor’s dramatic turnaround yesterday on what investments would receive tax concessions in self-invested personal pensions (Sipps), Mr Ward is stuck with a £200,000 second property and has missed out on tax relief of up to £102,000.

The 40-year-old mortgage broker recently completed the purchase of a two-bedroom flat in Colchester with the intention of putting it into a Sipp.

He hoped eventually to add to his property portfolio, which includes a family house in Kent, with a holiday home that he also planned to put in the Sipp.

Yesterday Mr Ward described the Treasury’s U-turn on Sipps as “very disappointing” and said that it had soured his views on pensions even further.

“I still think putting your money into property is the most sensible thing to do but now I’ll be 40 per cent worse off,” he said. “The idea of having a property but getting pension tax benefits was fantastic.

“Now I’m just not going to open a pension, although I will keep the personal pension I have from a previous job.”

Mr Ward said that he was persuaded to buy a property to put in a Sipp by “hype” from the media and financial services industry. “I was influenced by the positive spin that was put on it by everyone,” he said. “You can’t just blame the Government, The Treasury has back-tracked on its own rules that, from April 6 next year, would have allowed savers to buy residential properties and other exotic investments with their Sipp, to take advantage of tax breaks of up to 40 per cent on the purchases.

Yes --- that HYPE thing............. mmmm.......

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They seem to don't they :unsure: .

I think the theory is that if you say the same thing often enough and in as many different places as possible, the desired piece of spin enters the sheeple's subconscious.

Once brainwashed in this fashion, they will continue to spend until all funds and lines of credit are exhausted.........not long to wait then ;) .

Ever thought about the subtle 'pi$$-take" (of the UK population) in the title of the 'so-called' "mega-hit" TV show "Little Britain"??

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Maybe Harry Enfield and Friends is more relevant?

_38347633_kevin300.jpg

Mr Ward : "The Treasury's U-turn on Sipps is so unfair

Now I'm just not going to open a pension, so there!

In fact I think I might just go out and pay 20% more

than the asking price, just to spite Gordon Brown!"

Mr Brown said he had every sympathy for the plight of naive, gun-jumping, chicken-counting , trumped up, spoilt brats, determined to cut off their noses to spite their own faces, and would be looking into more ways to annoy the shit out of them.

Edited by Sledgehead

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They seem to don't they :unsure:.

I think the theory is that if you say the same thing often enough and in as many different places as possible, the desired piece of spin enters the sheeple's subconscious.

Once brainwashed in this fashion, they will continue to spend until all funds and lines of credit are exhausted.........not long to wait then ;).

This theory is called "The Big Lie"

Someone may correct me here but I think it was popularised by one Joseph Goebbels :unsure:

(For the victims of Britain's ever worsening "education" system he was Hitler's equivalent of Peter Mandelsson)

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This theory is called "The Big Lie"

Someone may correct me here but I think it was popularised by one Joseph Goebbels :unsure:

(For the victims of Britain's ever worsening "education" system he was Hitler's equivalent of Peter Mandelsson)

Alistair C a better equivalent.

Look up some of Hermann Goering's sayings too, particularly upon how you take a population to war.

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This theory is called "The Big Lie"

Someone may correct me here but I think it was popularised by one Joseph Goebbels.

'Goebbels And The "Big Lie"':

http://www.jewishvirtuallibrary.org/jsourc...oebbelslie.html

Nazi propaganda chief Joseph Goebbels was the master of the “big lie” tactic in which a lie, no matter how outrageous, is repeated often enough that it will eventually be accepted as truth. Goebbels explained:

"If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State."

As noted, it's a familiar tactic of New Labour's spin machine.

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Alistair C a better equivalent.

Look up some of Hermann Goering's sayings too, particularly upon how you take a population to war.

Spoilsport! :P

I thought I'd got away with comparing one of the icons of pure evil with Joseph Goebbels for a minute :D

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Guest Bart of Darkness
Look up some of Hermann Goering's sayings too, particularly upon how you take a population to war.

Yeah, I know what you mean.

"Naturally the common people don't want war: Neither in Russia, nor in England, nor for that matter in Germany. That is understood. But, after all, IT IS THE LEADERS of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is TELL THEM THEY ARE BEING ATTACKED, and denounce the peacemakers for lack of patriotism and exposing the country to danger. IT WORKS THE SAME IN ANY COUNTRY."
Edited by Bart of Darkness

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The media are complicit in this farce: that was the one thing our Mr Ward got right. Just consider how much hype there was in the media. Yet for all the talk of it being "too good to be true", how many journalists are actually on record putting it directly to Tony Blair that Britain neither needed nor could afford such a tax break for its richer members?

The question is, why? Consider the following:

1 . Avoiding an H Bubble burst is recognised by the government as being fundamental to the economic well being of the country.

2 . Tax changes seen as supportive of H prices are leaked to the press to help prop things up.

3. The press, being full of VIs decide that the tax breaks are either a trap for the wealthy or just unwise and likely to be closed in any case.

4. The press decide to try and force the tax breaks thru in any case by encouraging as many as possible to commit to them.

5. The press largely avoids raising difficult questions about pricing out FTBs and the squandering of taxpayers money, for fear that somebody high up in government will be forced to show their hand on the inevitable fate of the tax breaks before an electorally significant fraction of the public have committed funds.

This isn't so much conspiracy, as government showing an understanding of human nature. It's the same understanding that allows confidence tricksters to relieve the greedy of their fortunes.

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"For many investors that meant not only the chance for their Sipp to hold residential property, but for the first time, many other forms of investment not currently allowed, such as works of art, the odd racehorse or even fine wine."

This is from the BBC article linked to by karhu. Why where people ever thinking of investing their PENSION funds in a RACEHORSE!! Do they think they're going to grow old together gracefully? What a farce. Does sound as if those who over-promoted sipps are largely responsible for shooting themselves in the foot (well, both feet actually).

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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