Savings and Investments thread

shine166 · April 2

valleynick66 said:

shine166 said:

Yeah we've got no plans to go the SO route, was just concerned the outright buys were over priced, which they kinda do tend to be as you're paying for the pleasure of walking into a new property.

If you are happy with the price of the property you want don’t worry what someone else pays / doesn’t pay. A home first. Investment second.

I hear you, but spending 400k on a property is definitely an investment. If we had to move in 5 years id like to think I've not been over charged and have half a chance of getting my money back. Its about me not being over charged rather than not wanting someone else to have a better deal.

Weve backed out for now anyway, in the hope that some of the 'extras' like flooring and turf get added to the price.

Friend Or Defoe · April 2

shine166 said:

We are currently looking at a new build in our local area, its priced at 375k plus fittings. The house next door is exactly the same, but available on the shared ownership scheme. They've valued it at 335k including fittings, is this normal ? I presumed the affordable housing system benefitted the buyer by owning a % to get on the ladder, rather than being a actual lower ticket price too.

Is it just the SO part? Does one have a better view? I'm being serious btw!

Granville Park have identical houses with the one next door being worth a lot more due to having an SE3 post code.

Chaz Hill · April 2

£125 this time on my half max PBs. Wife only got £25 on her max holding and junior got zero on his half max holding 😬.

Athletico Charlton · April 2

Do you get an email on PB winnings or have to check. Bought a few for the first time a couple of months ago so think this is the first draw I would qualify for

moutuakilla · April 2

Athletico Charlton said:

Do you get an email on PB winnings or have to check. Bought a few for the first time a couple of months ago so think this is the first draw I would qualify for

Yes, you do. Can also get the app to quickly find out if you've won

meldrew66 · April 2

£50 on max.

Athletico Charlton · April 2

moutuakilla said:

Athletico Charlton said:

Do you get an email on PB winnings or have to check. Bought a few for the first time a couple of months ago so think this is the first draw I would qualify for

Yes, you do. Can also get the app to quickly find out if you've won

Thanks. Now got the app and means I can excitedly join in for the first time in the PB prize announcement on this thread and announce I didn't win anything. 🤣

PragueAddick · April 2

moutuakilla said:

Athletico Charlton said:

Do you get an email on PB winnings or have to check. Bought a few for the first time a couple of months ago so think this is the first draw I would qualify for

Yes, you do. Can also get the app to quickly find out if you've won

You dont even need the app. https://www.nsandi.com/prize-checker Just needs your bondholder number, not to be confused with your main NS&I number, confusingly😉

I got £175 this time, but I also cashed in £20k, part to invest in gilts. Its a tax-non resident thing. PBs fall into the IHT net whereas gilts do not, and the 10 year ones are trading at a discount right now, thanks to Trump. A 10 year Green Gilt delivers a nice 4.65% coupon, and supports the sort of infra investments everyone is now screaming for on the Fuel Shortages thread.

hmmoore · April 2

£225 on max

LenGlover · April 3

£150 on approx 50% for me and £250 for ‘Er Indoors on similar

golfaddick · April 8

bobmunro said:

The $64,000 question - have the markets hit bottom yet or is there further to go?

Thoughts?

Hi @bobmunro

I hope you headed my advice & went back in last week. Whilst the ceasefire might not hold or there might not be an agreement after the 10 days the markets have bounced nicely with the news.

Overnight Japan was up 5%. Today most European markets are up over 3% and the UK up 2.5%.

golfaddick · April 8

golfaddick said:

bobmunro said:

The $64,000 question - have the markets hit bottom yet or is there further to go?

Thoughts?

You might have missed the bottom as markets are back on the rise. UK up the last 2 days & this afternoon Trump made an announcement that the war was almost done & the Straits of Humez would soon be back open again. That news sent the US markets soaring & the S&P509 is currently up 2.75%.

Never try to time the markets & keep fully invested at all times.

But to answer your question......no-one knows. Trump only needs to open his mouth, say the wrong thing & the markets fall again.

If was a betting man (and I'm not) I'd say the worst is over and things can only get better. But that's not taking into account Netanyahu, the Iranians or the Huthi's.

And here are my thoughts from.March 31st.

I may not know much about football.....😉

Rob7Lee · April 8

Trump comes up trumps again 🤣

Bumper day so far and US not open yet. SIPP now at an all time high (again) up £13.5k today!!

Chaz Hill · April 8

golfaddick said:

golfaddick said:

bobmunro said:

The $64,000 question - have the markets hit bottom yet or is there further to go?

Thoughts?

You might have missed the bottom as markets are back on the rise. UK up the last 2 days & this afternoon Trump made an announcement that the war was almost done & the Straits of Humez would soon be back open again. That news sent the US markets soaring & the S&P509 is currently up 2.75%.

Never try to time the markets & keep fully invested at all times.

But to answer your question......no-one knows. Trump only needs to open his mouth, say the wrong thing & the markets fall again.

If was a betting man (and I'm not) I'd say the worst is over and things can only get better. But that's not taking into account Netanyahu, the Iranians or the Huthi's.

And here are my thoughts from.March 31st.

I may not know much about football.....😉

You got contacts in the White House, golfie

Rob7Lee · April 8

Quick pension question for Golfie.

MrsR7Lee can access her SIPP in 12 months. For arguments sake let’s say it’s at £200k, therefore she can take 25% tax free (£50k) leaving £150k. I believe I’m right in saying that’s not a crystallisation event and therefore she can continue to contribute?

that aside, say in another 5 years it had grown £100k to £250k, can she then take out 25% of that 100k growth? Ie another £25k?

bobmunro · April 8

Rob7Lee said:

Trump comes up trumps again 🤣

Bumper day so far and US not open yet. SIPP now at an all time high (again) up £13.5k today!!

It aint over until the fat lady sings! I would guess more ups and downs for a few weeks yet and the biggest risk is likely to be Israel who won't be happy with this ceasefire, especially as it would appear they had little to do with the brokering.

I missed the boat last week anyway - grrr! Money in my SS ISA still tied up in MMFs that I intend to sell today.

redman · April 8

Rob7Lee said:

Quick pension question for Golfie.

MrsR7Lee can access her SIPP in 12 months. For arguments sake let’s say it’s at £200k, therefore she can take 25% tax free (£50k) leaving £150k. I believe I’m right in saying that’s not a crystallisation event and therefore she can continue to contribute?

that aside, say in another 5 years it had grown £100k to £250k, can she then take out 25% of that 100k growth? Ie another £25k?

I'm sure Golfie will confirm, but I'm pretty sure you are wrong on this. The tax free withdrawal is a crystallisation event, so further withdrawals are taxable. AS per my understanding if she were to withdraw £20k tax free, an equivalent of £60k would be crystalised and be transfered to a different bit of the fund. Any transfers from this, including any gain thereon, are taxable. The other £120k remains uncrystalised.

Rob7Lee · April 8

redman said:

Rob7Lee said:

Quick pension question for Golfie.

MrsR7Lee can access her SIPP in 12 months. For arguments sake let’s say it’s at £200k, therefore she can take 25% tax free (£50k) leaving £150k. I believe I’m right in saying that’s not a crystallisation event and therefore she can continue to contribute?

that aside, say in another 5 years it had grown £100k to £250k, can she then take out 25% of that 100k growth? Ie another £25k?

I'm sure Golfie will confirm, but I'm pretty sure you are wrong on this. The tax free withdrawal is a crystallisation event, so further withdrawals are taxable. AS per my understanding if she were to withdraw £20k tax free, an equivalent of £60k would be crystalised and be transfered to a different bit of the fund. Any transfers from this, including any gain thereon, are taxable. The other £120k remains uncrystalised.

Thanks understood. The plus is she can still contribute and that in future can also invest and grow and a further 25% taken tax free but not from the original which is in effect ring fenced inc any future growth.

golfaddick · April 8

Rob7Lee said:

Quick pension question for Golfie.

MrsR7Lee can access her SIPP in 12 months. For arguments sake let’s say it’s at £200k, therefore she can take 25% tax free (£50k) leaving £150k. I believe I’m right in saying that’s not a crystallisation event and therefore she can continue to contribute?

that aside, say in another 5 years it had grown £100k to £250k, can she then take out 25% of that 100k growth? Ie another £25k?

Any money taken out of a pension is known as a "benefit crystallization event: or BCE.

In your scenario, by taking the whole 25% TFC then the whole pension is crystallised at that point and no more TFC can be taken, however much the "crystallised" pot has eventually grown to.

However, you are correct in saying that the full £60k Pension Annual Allowance is still available so there is nothing stopping Mrs Rob7Lee putting money back into the pension. In this case there would be 2 distinct "pots" inside her pension - one crystallised (the remaining £150k) and a new uncrystalised pot, from which she can then take 25% TFC from at a later date.

However, there are strict "ryclicing" rules around what you can put into a pension once the TFC has been taken. You cant simply take out £50k and put it back in again to receive tax relief on it. Even putting a lump sum of £20k could fall foul of the rules. As long as any money subsequently invested back into the pension can be seen as "normal" or as per your usual habits then that will be ok.

Should you at anytime take out "taxable" income from your pension once the full 25% tax-free allowance has been taken then the "Money Purchase Annual Allowance" (MPAA) kicks in & you are limited to just £10k pa contributions.

To sum it all up - unless you need the full 25% out in one go I would advise only taking what you really need & leaving the rest in the pension. In this case, does Mrs Rob7Lee really need £50k next year ? Obviously if there is an outstanding mortgage or other debt that needs to be paid off then fine. But I generally find people just take out their max 25% in one go & ultimately some ends up just sitting in a bank account not earning much interest and/or having tax deducted from that interest.......where it could be sitting in the pension & growing tax-free.

Rob7Lee · April 8

Thanks @golfaddick

I pay a fair amount each month into her pension currently (basically so that 100% of salary goes into pension inc her works pension, she earns less than £60k by some margin!) and would continue with those amounts so shouldn't fall foul of recycling. Trying to get hers up as high as possible to balance out taxation when we both start drawing.

At some point we'll need to start transferring some monies to the children (I say children, 23 & nearly 26!) especially as next year pension pots will form part of an estate. Works gone a little too well of late so income has grown quite a bit, plus I wasn't expecting to have so many employee shares, that whilst in long term plans start to mature in 4-5 years.

First world problems.....

Carter · April 8

Rob7Lee said:

Thanks @golfaddick

I pay a fair amount each month into her pension currently (basically so that 100% of salary goes into pension inc her works pension, she earns less than £60k by some margin!) and would continue with those amounts so shouldn't fall foul of recycling. Trying to get hers up as high as possible to balance out taxation when we both start drawing.

At some point we'll need to start transferring some monies to the children (I say children, 23 & nearly 26!) especially as next year pension pots will form part of an estate. Works gone a little too well of late so income has grown quite a bit, plus I wasn't expecting to have so many employee shares, that whilst in long term plans start to mature in 4-5 years.

First world problems.....

I'd hate to have those problems 😆

Rob7Lee · April 8

Carter said:

Rob7Lee said:

Thanks @golfaddick

I pay a fair amount each month into her pension currently (basically so that 100% of salary goes into pension inc her works pension, she earns less than £60k by some margin!) and would continue with those amounts so shouldn't fall foul of recycling. Trying to get hers up as high as possible to balance out taxation when we both start drawing.

At some point we'll need to start transferring some monies to the children (I say children, 23 & nearly 26!) especially as next year pension pots will form part of an estate. Works gone a little too well of late so income has grown quite a bit, plus I wasn't expecting to have so many employee shares, that whilst in long term plans start to mature in 4-5 years.

First world problems.....

I'd hate to have those problems 😆

In hindsight I should have spent more and invested less!

redman · April 10

Rob7Lee said:

Thanks @golfaddick

I pay a fair amount each month into her pension currently (basically so that 100% of salary goes into pension inc her works pension, she earns less than £60k by some margin!) and would continue with those amounts so shouldn't fall foul of recycling. Trying to get hers up as high as possible to balance out taxation when we both start drawing.

At some point we'll need to start transferring some monies to the children (I say children, 23 & nearly 26!) especially as next year pension pots will form part of an estate. Works gone a little too well of late so income has grown quite a bit, plus I wasn't expecting to have so many employee shares, that whilst in long term plans start to mature in 4-5 years.

First world problems.....

Paying 100% of her salary into her pension. If you literally did this she wouldn't be getting any tax relief on it would she? But when she draws it will become taxable. Without knowing the full details isn't it wise to only pay in above the tax free element?

Huskaris · April 10

My portfolio has finally got back to its peak (which was Oct 25 and Jan 26). For how long I wonder!

RaplhMilne · April 11

This is my current status when looking at HMRC UK GOV online. It is now 11th April 2026. How can after a year have HMRC still not worked out my tax for 24/25. A they state that this will be done by 5th April 2027. No, I am not the private owner of Microsoft or Apple. I am retired with a single works pension, a state pension and about 6 different savings accounts that will have untaxed interest. Am I waiting for HMRC to find a piece of paper a pencil and a calculator to work this out. They have in the Tax year 24/25 and 25/26 massively over estimated my untaxed savings interest. I think across the two years they owe me over £3,000. This has been despite me changing the figures online to more accurately reflect the true figure.

Any experience on how to get this moving ?

Image: https://us.v-cdn.net/5000498/uploads/editor/nn/vm3i0882qsou.png

LargeAddick · April 11

The above is the sort of thing I'm looking to avoid. Since retiring in June 2022 I've been returning to the firm on an ad hoc basis to cover for my successor when he's been on holiday/ill. Last tax year I earned about 4k and after using part of my tax free allowance paid about £400 tax. I am paid through the company payroll so taxed at source.

On 1st April the firm were bought out. The new firm still want me to help out but want me to invoice them for any hours worked and not put it through the payroll meaning I'm liable for reporting it to HMRC. I'm dead against that as once I start doing so won't HMRC want me reporting quarterly under the new making tax digital reporting. And once I start doing that I'm worried I'll be stuck doing that for life. I'm happy having all my income taxed at source and don't want the hassle. I'm also not sure why the firm can't or won't put it through the payroll. They have a number or part time staff and I'm just part, part time. Think I'll avoid the hassle and just jack it in.

SE9toDA2 · April 11

@ralphmilne have you done a self assessment for the relevant tax years

golfaddick · April 12

LargeAddick said:

The above is the sort of thing I'm looking to avoid. Since retiring in June 2022 I've been returning to the firm on an ad hoc basis to cover for my successor when he's been on holiday/ill. Last tax year I earned about 4k and after using part of my tax free allowance paid about £400 tax. I am paid through the company payroll so taxed at source.

On 1st April the firm were bought out. The new firm still want me to help out but want me to invoice them for any hours worked and not put it through the payroll meaning I'm liable for reporting it to HMRC. I'm dead against that as once I start doing so won't HMRC want me reporting quarterly under the new making tax digital reporting. And once I start doing that I'm worried I'll be stuck doing that for life. I'm happy having all my income taxed at source and don't want the hassle. I'm also not sure why the firm can't or won't put it through the payroll. They have a number or part time staff and I'm just part, part time. Think I'll avoid the hassle and just jack it in.

Making tax digital only comes in this tax year (26/27) for those with net profit in excess of £50k. It then comes in next tax year (27/28) for those with net profit in excess of £30k.

If you earn under £10k you wont be affected for a good few years yet.

golfaddick · April 12

SE9toDA2 said:

@ralphmilne have you done a self assessment for the relevant tax years

This.

No idea why HMRC are calculating your tax for you under these circumstances.

Also, why are you receiving interest that you pay tax on ? Even at 4% you can have £25k in cash. Then there is your annual ISA allowance (£20k) and then other tax free savings vehicles such as Premium Bonds (£50k). Thats almost £100k in cash assets before you start paying tax on interest.

PragueAddick · April 12

golfaddick said:

SE9toDA2 said:

@ralphmilne have you done a self assessment for the relevant tax years

This.

No idea why HMRC are calculating your tax for you under these circumstances.

Also, why are you receiving interest that you pay tax on ? Even at 4% you can have £25k in cash. Then there is your annual ISA allowance (£20k) and then other tax free savings vehicles such as Premium Bonds (£50k). Thats almost £100k in cash assets before you start paying tax on interest.

I think i know what the OP is referring to, as they are trying the same thing with me. In the last couple of years high interest rates have meant that cash rich boomers have earned decent sums from savings accounts. The banks are dutifully reporting the interest to HMRC, who then use it to make hostile overclaims for tax. In my case they have been doing this despite the fact that they have been acknowledging my tax non-resident status since 1996, and indeed have a confirmation from the Czech Tax Office that I am , declaring interest on those bank accounts here. Furthermore in 2023 they confirmed in writing ( I was thinking of framing it) that they agree I no longer need to fill self-assessment. Yet suddenly in the last months I started getting demands to self-assess and gave me estimates of my taxable revenue. At around 15k this coincided very closely with my UK bank interest. And why did I suddenly start getting these demands? Because back in late July I had the temerity to want to access my SIPP gross (as tax NR people are allowed). But H-L need HMRC’s form DT-individual in order to pay me gross. 9 months later I still dont have it. Three weeks ago I managed to get through and was assured by a nice Glaswegian lady that it really is in process -she acknowledged the delay - and I would get it within 10 working days. So far nothing since then.

It’s another example of the absolute state of that operation and how they harasss ordinary people for easy pickings while continuing to be useless in tackling the big tax avoiders.@ralphmilne the specifics of my case are a bit niche but as I read your post, you have indeed completed self- assessment?

My advice would be, first use this thread to test whether they are indeed at fault (e.g you have completed SA forms) If so, try to call them, with your paperwork at hand. The wait time is notorious, but try to call when they first open the lines, you may wait for only 20 mins😉 I have at least found that the people answering those lines are pleasant and try to be helpful, but unfortunately they are basically call centre people and you will be put on hold while they talk to someone else to get answers…and sometimes the line cuts out. Which mag. and Martin Lewis suggest that if the issue is getting messy you are entitled to ask for the person’s name and to inform them that you (too) are recording the call. There is also an official complaint system but that would only be relevant if they keep on telling you one thing and do another, or nothing.

Savings and Investments thread

Comments

Categories