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ShirtyTheSlightlyAggresiveBear

Uk Pensions - 40% Transfer Tax

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Haven't seen this mentioned here or anywhere else, slipped under the radar for 6 April 2006 pension changes. <_<

Basically any pensions transferred out of the UK are subject to a nasty 40% tax at least. (Excludes dest country taxes).

Link

.. if the funds have been transferred out of the UK, the member will have the option of taking up to 25 per cent as a lump sum and the balance as a regular income stream. If the member takes out more than 25 per cent, UK tax is charged at 40 per cent.

Importantly, taxes can't be paid from the fund itself; they must be borne by the member concerned.

So it appears that the UK gov certainly does not want a mass transfer of baby boomer pensions funds to sunnier warmer climes anytime soon. The only choice is a regular income stream subject to FX volatility and other misc costs no doubt.

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It's as if the UK is one big prison in which you have to work till you drop.

Why do you think they want cattle tags^H^H^H^H^HID cards?

All in all, it's just another reason _NOT_ to pay money into pensions. When the pension scam really starts to break down, Brown is going to have a heck of a lot to answer for.

Edited by MarkG

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Could be also why they haven't built anymore prisons and why the justice system isn't locking anybody up anymore

Everybody tagged and bound by economic borders....nice

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Why do you think they want cattle tags^H^H^H^H^HID cards?

All in all, it's just another reason _NOT_ to pay money into pensions. When the pension scam really starts to break down, Brown is going to have a heck of a lot to answer for.

Its not just brown. every government since the 60's has passed the bill onto the next generation. I have long ago accepted that pensions dont work and I will need other provision. Sadly most people are sleepwalking.

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Its not just brown. every government since the 60's has passed the bill onto the next generation. I have long ago accepted that pensions dont work and I will need other provision. Sadly most people are sleepwalking.

Wonder what the future will be like with millions of 'sleepwalkers' wandering around...

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Wonder what the future will be like with millions of 'sleepwalkers' wandering around...

frightening. My view is that the public sector pension provision is completely unsustainable. This will see 70's style strikes and unrest when the government finally gets to grips with reality and tells them how itsa going to be.

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Wonder what the future will be like with millions of 'sleepwalkers' wandering around...

Watch 'Dawn of the Dead' sometime :).

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We need to get a grip.

The money was paid in on favourable terms, tax-wise. Why should you be able to take it out on a favourable tax basis? Without this rule, the very rich would basically defer as much of their income as possible in order to get it tax free. Imagine the squealing on this site if that were the case...

Also, at least it can be taken overseas. An Australian citizen's super is locked into Australia.

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We need to get a grip.

The money was paid in on favourable terms, tax-wise. Why should you be able to take it out on a favourable tax basis? Without this rule, the very rich would basically defer as much of their income as possible in order to get it tax free. Imagine the squealing on this site if that were the case...

Also, at least it can be taken overseas. An Australian citizen's super is locked into Australia.

But as far as I know, in Australia you are not compelled upon getting your superannuation to buy an annuity from an insurance company at a ramped up price. That is the reality in the UK for a stakeholder pension (equivalent to superannuation). It basically means that the people that inherit all the money you've saved (albeit on tax favourable terms) are not your next of kin but an insurance company. How much effective lobbying must these guys have done to get a rule like this?

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In the UK ,you are given a guaranteed benefit and so of course the principle is not refundable: why should it be? The return on it would eat away the principle in the real world and so it persists only for spouses etc.

In Australia, superannuation is mandatory with no free top ups from employers but lots of caps. Still, ~AUD 3 bn a week pours into the pockets of overpaid and largely passive fund managers who may just manage to perform to the index (not net of fees, of course) if you're lucky. If you're really lucky, they may lose it all for you on France Telecom stocks. There are no guarantees and it's taxed both going in and coming out. Whatver poxy amount is left at the end of your life, when you've eaten into the principle to offset a crap return on a small amount of money, you do indeed get back. It'll be about three dollars.

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Is this thread here to point out the benefits of investing in real estate over pension/super funds?

It certainly appears so to me..... :)

No body goes bankrupt taking pension but invest in property you could go bankrupt.

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Is this thread here to point out the benefits of investing in real estate over pension/super funds?

It certainly appears so to me..... :)

With the amount of pensioners soon (in years to come) to overtake the working, you will not have anyone to sell to.

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Conclusion: a balanced approach that takes advantage of the tax breaks of super plus the tax breaks of property with a decent amount of leverage (debt is not always a bad thing) within the boundaries of ensuring that you understand / can be bothered with complexity.

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Is this thread here to point out the benefits of investing in real estate over pension/super funds?

It certainly appears so to me..... :)

You are right,

do you know that the housing market has been used on my friends Economics degree course to explain cyclical markets, drives for inflation and herd instincts..?

scarey heh...

"i am investing in a market that relies purely on perception and opinion to support its value, where there are now more examples of this asset available per head of capita then there has ever been and also where this opinion also has to believe that 300% inflation in 7 years is sustainable. What is really impressive is that this market has een seen to collapse 4 times before, the last time only 7 years before this boom started.. What is even cooler then that is that people can no longer afford the properties as prices are now 8 times the average salary and the press reports loans of 5 times salary is irresponsible.

a market where fewer people are entering then at any time in history who are planning to use the asset for its designed purpose.

I rely soley on others looking to invest as I am, although they would have to pay their own money to support the debt repayments each month as the asset does not generate enough itself.

I am investing in a market where it is constantly reported to be crashing, or not crashing showing that the risk is real..

A market where the Chief Economist of the UK who is responsbile for the interest rates against the loans that are used to buy these assets has warned that prices are not sustainable and then when people realise how he is managing inflation prices will crash.

but I invest my money in this market because I am a very brave man."

Edited by apom

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No body goes bankrupt taking pension but invest in property you could go bankrupt.

Maxwell didn't do too well though. Although he probably managed to swim to shore and find a £multi-million island paradise with the pension cash in a bag marked swag..

Edited by music man

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pensions crash = no BTL crash :)

BTL is way more flexible than pensions and annuities and you there is no chance insurance company taking everything if you croak a couple years into taking your pension.

Edited by mercsl

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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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