VeryMeanReversion

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About VeryMeanReversion

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  1. Being a chicken sexer from the Isle of Man used to be the best job and location get the lowest car insurance premium. I assume there is a small group of them that never drive their cars but simply keep well-behaved chickens in them.
  2. Funny how banks create money out of nothing but don't like people taking it out for nothing.
  3. Capital Gains Tax is rarely thought about since people rarely make investment gains big enough (outside a tax-wrapper such as ISA/SIPP) to worry about it. For a house, the PRR relief means you don't pay it on your only house which is almost always the case. I don't expect this to change. However, if you let property (BTL or accidental landlord due to inheritance), have 2+ lodgers or build one, you don't get the exemption. Also, if you marry someone that already has a house, you will start losing the PRR on one of them. The CGT rate is 20-28%. The tax bills can get very big for gains on houses. EMI is a type of stock option that is taxed at 10%. I took a salary cut to get them since marginal PAYE rates are ~65% in the £50-60k band. They might be worth 5x my salary, they might be worthless. I'd rather take the risk and get 90% of something/nothing than only see 35% of what I worked for.
  4. If you don't live there as your main residence, you are not entitled to claim the rent-a-room allowance. The tenants have much greater rights than a lodger if they can show you don't actually live there. If either of the lodgers knew the laws then they can make life very difficult for the non-resident landlord and shop them to HMRC since tax-is actually payable on the rental income. Having two lodgers means HMRC can consider that you are "running a lodging house" so you lose your PRR exemption i.e. liable for CGT on a house sale. Some neighbours are converting their outbuildings to a new dwelling for their kids or elderly relatives. They are unaware that this triggers an immediate CGT liability (even if it's a gift!). They told me its CGT exempt if they give it away but I've checked the rules very carefully. I'll be doing a bit differently by building first, moving in, nominated as primary residence then moving back to old house, then give it away say 12 months later, there is no CGT due. This will save me a ~£100K tax bill. I spend a lot of time reading up on this sort of stuff since the tax savings are enormous. e.g. some rough numbers.... IHT simple planning that will save £250K+ SIPP that will save me £400K+ (income tax and NI) Council-tax, planning-permission loopholes and CGT avoidance will save me ~£150K. EMI options that could save me £160K (or be worth nothing) Rent-a-room - say £78K income over 10 years, save £30K tax (@40%) That's ~ £1M in tax saved long-term, completely legal and using HMRC approved schemes, no need for trusts or dodgy accountants. That's more than 25 years of my net income saved by learning the rules of the game. (Biggest risk to the above is Corbyn getting in)
  5. Labour can't say anything since they are anti-semantic.
  6. VeryMeanReversion

    Amazon

    I've just ordered one chicken and one egg from Amazon. What do you think will arrive first?
  7. Wake up Moggy, there is still work to do!
  8. 1. Pick the right pension and you still own the capital and just draw income. Drop dead and it gets passed on tax-free if you are <75, otherwise it can go into a dependents pension, or be withdrawn at the beneficiaries marginal rate. 2. I manage my SIPP on a low-cost platform. Mine costs <£200 a year and I usually get £50 cashback. Before SIPPs, the spivs would take up to half the pension (e.g. 5% initial and 1.5% every year for 30+ years). Now they get next to nothing if you know how. 3. Defined benefits pensions may not pay out, some will end up in the PPF and lower effective values. Inflation may eat away at values. Any pension is liable for confiscation. (Common occurrence) 4. The tax incentives reduce future government payouts. They get much of it back in tax later. 5. Real interest rates matter more than nominal and they are absolutely dire for savers in recent years and for more to come 6. Pensions is a huge but predictable issue that 90% of people seem ignore until its too late. The other 10% will have retired early and wonder how they got away with it.
  9. All mine done via SIPP salary sacrifice. I get the income tax boost, national insurance boost and child benefit withdrawal boost. Basically, giving up £33 of net income gets me £100 in SIPP. Understanding effective marginal tax rates is very important just above a £50K salary level. I bought £70K of PMs in 2017/18 that effectively cost me £23K of net income. Up nearly £12K so far which I'll be able to get the lot back at ~90% net from aged 55. It helps offset my worst stock (Centrica, ouch, ouch, ouch) although the divis for that have been a big help. Invesco Physical Markets Invesco Platinum P-ETC 31/12/60 USD 55,411.01 49,898.29 +5,512.72 ETFS Metal Securities Ltd Physical Silver 26,213.64 19,991.80 +6,221.84 I have nearly no £ savings. Everything is in assets of various sort, basically house equity (mortgage-free in <5 years) and SIPP. I have around 20% in PMs, the rest is in divi stocks with Woodford bought after the big-drop for a speculative punt. Funnily enough, I have no bonds. They looks too risky (speaking as someone with PMs, Woodford and lots of individual stocks!). Another view of mine is that debt-wise, anyone/anything with any capability to pay it back already has their fill of debt. The students have to be forced into debt. The older workers like me are realising they need a pension and the last thing they need is more debt. Those without hope of retirement will just grab as much debt as they can and throw themselves on the state.
  10. In my personal quest through the world of loopholes, I've been looking at degree apprenticeships for my kids. The company pays 10% of the course costs, the government picks up 90%. You get paid whilst doing the degree although it takes longer. So you end up with no debt, reasonable wages and several years work experience. Better than £50K debt at RPI+3% and no experience. e.g. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/781848/Uni_Appr_guide2019_web2.pdf The downside seems to be less choice of courses where you study/work.
  11. The connection is fairly obvious. Rather than let the cows walk down the hill, they should roll them down attached to a dynamo. Then they can then walk back up, rinse and repeat.
  12. My Dad got cancer when 64, wanted to last until 80. Now at 82 with his new target of 84, he's on a treatment that costs the NHS around £200K for a two year course (90% is the cost of the drug). Good for him, good for me but I can't see how this makes any sense nationally. I've just checked, it turns out I'm working in a 79% nitrogen environment, better not nod off later
  13. Same for me. I've got two sports cars which I hardly use, now on the lookout for an LS460/600 as a reliable luxury barge. Air suspension, double-glazed windows and a 19-speaker Mark Levinson stereo should do the job. Spunko: We need a car-section.
  14. My in-laws get an exemption for low income and low savings. Since they have no mortgage and MrsVMR is their taxi, they have a higher disposable income than I do. I worked out that it was actually better to set some of their savings on fire to get the exemption which saves ~£1600 per year. Instead, they got a few things done on the house, paid some utility bills in advance and gave some £ away. With a bit more paperwork, employ yourself as an apprentice earning <£195/week to get a 50% discount. It appears that any accredited course is sufficient. Flower arranging would do. From the small print, only the apprenticeship wages count. Other income sources seem to be ignored. I see nothing in the apprenticeship agreement that stops you employing yourself for 1 minute a year and then paying yourself to do a cheap mickey mouse course. https://www.gov.uk/government/publications/apprenticeship-agreement-template Example application form for discount https://www.herefordshire.gov.uk/download/downloads/id/1263/apprentice_discount_form.pdf If you don't fancy that, there is always the mental impairment exemption.