What Would You Do?

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    What Would You Do?

    I'm an nhs worker who will pay 40.75 years NI at start of new tax year 2022. I completed 40 years worth today but seemingly the good old h-rc don't count partial years. I can get my nhs pension at reduced level as I'll still be under 60 next April (once paid all NI required; i was contracted out if serps so need 40 years to get full government pension, if it still exists when I'm of official retirement age).
    I own outright my main residence valued at approx £300k, bought in mid 1990s and also a rental valued at approx £200k, bought in late 1980s. I have around £60k i cash which I've not invested as I'm always tired after my nhs job. I know i should have invested in stock market.
    Main residence needs work doing to it eg, new central heating/ roof/windows. What would you do? Use the cash to do up main residence and live off pension + rental income? Or use the £60k to buy another rental?
    What would you do part 2 - 'sell' main residence to kids for eg £100k total and move into rental (just me, no kids) and then use that £100k to buy a rental? If I sell to kids at reduced amount and I live for 7 years, will that mean they don't need to pay inheritance tax?
    I hear 'shrunak' wants to tax those with assets to pay furlough bill.
    Any viewpoints would be appreciated.

    #2
    You only need 30 years of NI to get the full state pension but that kicks in at 67 so irrespective of how many years you have paid you won’t get any more.

    I’ll have paid 51 years if I work till I’m 67

    you need to get your NI checked on line which is easy to do

    Comment


      #3
      It's gov who wrote to me saying i need 40 years as i was contracted out of serps

      Comment


        #4
        I think you can give the kids the house up to value of £500k before inheritance tax kicks in anyway.

        Comment


          #5
          Check NI contributions records. I found I had a couple of years missing, error in one digit only on payslips.

          like many I only checked one number.. net pay
          ​​​​​​
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

          Comment


            #6
            The 40% inheritance tax begins above £325K plus £175K home allowance ( if family home left to own children ) which means no iht on estates below £500K.

            The 7 year rule on gifting means, after 7 years, the gifted asset is not counted back as part of the estate.

            Comment

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