What Would You Do?

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

    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

            Latest Activity

            Collapse

            • Damaged artwork expense
              by jtufty
              Hi all

              Silly minor question really. Last week the tenant accidentally knocked a framed picture off the wall and smashed it. It was only a cheap thing (I guess value was £10). I went out and bought a replacement picture for her. (I know I didnt have to, but shes a good tenant). I bought...
              24-09-2021, 10:35 AM
            • Reply to Damaged artwork expense
              by ram

              As per above, as the place is "part-furnished", which will not incude pictures on walls.

              It's a gift to a stranger. ( They are not family, not close friends - etc. ) and not a claimable expence in any way..
              ...
              25-09-2021, 16:05 PM
            • Reply to Damaged artwork expense
              by nukecad
              I'd see this as an altruistic gift to your tenant and leave it at that.

              My previous LL (although he had his faults) used to buy the 3 of us in his small HMO a £20 case of beer each at Christmas, I doubt he tried to claim it off tax.
              25-09-2021, 15:46 PM
            • Reply to Damaged artwork expense
              by jtufty
              Its let "part-furnished". (she didnt have a bed, so I put a bed in there, and the white goods, and the [now-broken] picture and a few other bits n bobs)...
              25-09-2021, 15:13 PM
            • Reply to Damaged artwork expense
              by Section20z
              You don't need to write anything. Retain the receipt and just include the appropriate amount in youR expenses/capital totals...
              25-09-2021, 13:57 PM
            • Reply to Damaged artwork expense
              by ram

              We assume the place is let as furnished ?

              I don't think pictures are classed as furniture / but then again, a mirror screwed to the wall - if broken by the tenant, then the tenant pays.
              So pictures ? not sure.
              I would charge the tenant the cost of replacement.
              ...
              25-09-2021, 11:43 AM
            • Reply to Damaged artwork expense
              by jtufty
              Thanks guys. I dont know what came over me! A momentary wave of altruism. Most unlike me!

              I have the receipt. What should I log it as? Should I literally just write "capital expense" or should I be more specific such as "replacement of broken picture"?
              25-09-2021, 06:45 AM
            • Reply to Damaged artwork expense
              by jpkeates
              It's a replacement item of furniture and its allowable as such.
              There's an inevitable element of betterment when you replace one thing with another.

              And £40 is neither here nor there as a capital item.
              24-09-2021, 13:16 PM
            • Reply to Damaged artwork expense
              by Section20z
              That sounds definitely like an improvement as you didn't have to splash out £50 you crazy dude.
              £10 down to repairs and £40 capital expense I reckon.
              24-09-2021, 11:59 AM
            • Reply to Let Property Campaign.
              by armour
              No Neelix, I don't approve of tax evasion.

              As it happens, I am the friend who has convinced the lady that it was best all round if she made a clean breast of it and fessed up as soon as possible via the Let Property Campaign and am using such talants as I posess to help her to do so....
              23-09-2021, 07:46 AM
            Working...
            X