Raid my savings?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Raid my savings?

    One tenant moved out on Friday, another moves out on 31st, and a third moves out 30th June. A fourth tenant tells me they cannot pay rent in full. Also, this year I have to upgrade the electrics on a further 11 properties, maybe £1k per flat. I have another 11 properties let, to pay for these voids, and have already paid my July tax. I have about £25k in the bank. I can see myself having to pay about that much in tax next January, so have only rent from a dwindling stock of let properties to live on for the rest of the year.

    Recently an index linked National Savings investment matured, and I can take £20k, or reinvest it for another 5 years. Until recently, I was planning to reinvest, but in view of lack of cash, wonder if I should take the money out?

    Any thoughts?

    #2
    How much do you earn per annum on the savings?
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Originally posted by jpkeates View Post
      How much do you earn per annum on the savings?
      Very little. It's now CPI+0.01%.

      Comment


        #4
        Assume you've already maxed out your pension contributions then ?

        Comment


          #5
          Originally posted by Section20z View Post
          Assume you've already maxed out your pension contributions then ?
          Yeah. I can only contribute £240 pcm, as am not employed.

          Comment


            #6
            Originally posted by JK0 View Post

            Yeah. I can only contribute £240 pcm, as am not employed.
            In that case you are clearly not boracic and it is doing sod all good in NS&I so I say take it out and have a cruise or give it to the kids or cancer research ¡¡

            Comment


              #7
              I second that.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                Originally posted by jpkeates View Post
                I second that.
                Thanks. I wasn't asking for advice how to spend my money. I've got plenty of ideas for that.

                Comment


                  #9
                  If its cash available before paying next January's tax bill, buy £20K of premium bonds. There is a monthly draw and chance to win £25 or £1 Mil.

                  Comment


                    #10
                    I'd take the money out. £25k in the bank may cover your taxes but if you haven't got another lump sum easily accessible for emergency repairs or other unexpected but essential costs etc, you may find yourself juggling finances.

                    If you haven't already got Premium Bonds, the maximum you can invest is £50K.

                    Comment


                      #11
                      Thanks Claymore. I think I concur.

                      Comment

                      Latest Activity

                      Collapse

                      • Reply to CGT after selling my main residence
                        by AndrewDod
                        It doesn't have to be let out.

                        If OP lives in house for 5 years, then finds another primary residence (declared as such, or based on the facts) and then sells original house 2 years later, CGT would be payable on 2/7ths of the gain.

                        If the OP had owned and lived in the house...
                        02-07-2020, 17:03 PM
                      • CGT after selling my main residence
                        by Echoes
                        Hi there
                        First of all thanks in advance for your reply. I would really appreciate if you can calify some of my confusion.

                        I have few queries regarding selling my main residence which would impact on how much CGT I would pay...

                        1. I am buying a new house to live so...
                        02-07-2020, 14:14 PM
                      • Reply to Stamp Duty on Freehold House subject to long leases; merge title?
                        by Gordon999
                        Flats must remain under leasehold title or the next buyer will have difficulty finding a mortgage.

                        sdlt is payable on residential property transfers for £190k property , it is 2% on the amount above £125K. i.e 2% of £65K.= £1300.

                        If you already have a property registered...
                        02-07-2020, 15:25 PM
                      • Stamp Duty on Freehold House subject to long leases; merge title?
                        by carolem
                        Am interested in buying freehold house which is divided into 2 flats, both let out on AST. G
                        round floor flat is held under the terms of a Lease dated the 11 November 1987 granted for the term of 999 years from the 1st February 1987 and the first floor flat is held under the terms of a Lease dated the
                        ...
                        Should Nelson Mandela's statute remain?
                        0%
                        0
                        Should death penalty's reintroduction be subject to public referendum?
                        0%
                        0
                        02-07-2020, 10:02 AM
                      • Changes to Landlords tax relief and landlords tax credit
                        by cadence248
                        Good afternoon all,

                        I've been getting to grips with the changes to landlord's tax relief over the last few years. One thing that worries me considerably is that since all rental income is now taxed, and I must pay my loan interest and repayments out of this also, that really doesn't leave...
                        02-07-2020, 15:11 PM
                      • Reply to CGT after selling my main residence
                        by jpkeates
                        If you have lived in your main residence since you bought it, there's no CGT on the sale.

                        If you let it out, CGT would be applicable on the period it was let less 9 months (so if you let it for less than 9 months before selling it, there would be no CGT to pay.

                        You will need...
                        02-07-2020, 14:59 PM
                      • Reply to Returning from oversea landlord taxation
                        by LAN45
                        Thank you....
                        02-07-2020, 14:19 PM
                      • Returning from oversea landlord taxation
                        by LAN45
                        Hello,

                        I have been living abroad and paied rental income taxes, according to legislation, to HMRC as oversea landlord.

                        ue to recent developments I'm moving back to UK looking for a job and would like to understand how to handle paying taxes? I will have no further income for...
                        22-06-2020, 12:15 PM
                      • Reply to Tax Return - HELP!
                        by jpkeates
                        I'd include the 12th month.

                        While you're correct that the income fell into the 2018/19 tax year, you didn't declare it then, which is could trigger a fine and a penalty.
                        It probably won't, but you need to be very careful with your tax - getting on the wrong side of HMRC is a lifetime...
                        02-07-2020, 08:51 AM
                      • Tax Return - HELP!
                        by Brian862107
                        Does anyone know of any good online tutorials/guides for filling out your self-assessment tax return? I don't know about you's but I hate filling out forms (they always ask you to tick a box to say the information you've put in is correct too!!)!

                        This is my first year filling out the self-assessment...
                        01-07-2020, 15:51 PM
                      Working...
                      X