Financial Services Compensation Scheme down to £75K.

[Cyclone]

You didn't say little trouble.

You said if you invested it in the ftse250 it would now be worth 200k. You were wrong, it's actually 170k, and if you sold it today you would pay 20 - 25k in tax.

 

You then claim that you can make 50k a year but pay no tax, but you can't or won't explain how. I've no idea why, because you could simply prove your point and then I'd say "I was wrong, thanks very much for showing me". Instead you just keep repeating yourself and refusing to prove anything.

 

You mentioned a few options in the last post, one of them is SIPPS, a self invested pension plan. Not much use to you as an income unless you're retired, and you pay tax on pension income, so lets ignore that one.

ISA is another option, you can have just over 11k in stocks and shares ISAs now... So to make 50k tax free, let's be generous and say they return 5% you'd need a million quid in ISAs. Obviously the 11k limit is quite new, it was previously lower, but lets ignore that, at 11k/annum you need to invest the max in ISAs every year for 90 years. After which, you're quite correct, you could indeed make 50k/annum tax free.

 

Why do you feel the need to keep attacking me when all I've done is ask you to prove what you've claimed? Are you this adversarial in real life?

 

I had to look up chattels (notice the spelling), I'm quite happy to learn something knew. Do you invest in antique clocks then? Or do you have 90 years of ISAs built up to provide your income?

 

Chattels that escape CGT

Possessions such as antiques and collectibles are called chattels. Gains on some are tax-free. Items with a predicted life of 50 years or fewer, known as ‘wasting assets’, are CGT-free, provided they were not eligible for business capital allowances. Antique clocks and vintage cars are treated as ‘wasting assets’. Pleasure boats and caravans also fall into this category.

 

If the gain is not tax-free, CGT is charged in a special way. The taxable gain is the lower of the actual gain or five-thirds of the excess of the final value over £6,000.

 

For example, if you sell an antique clock for £7,000 which you originally bought for £5,000, the actual gain is £7,000 - £5,000 = £2,000. The gain under the special rules is 5/3 x (£7,000 - £6,000) = £1,666. Since this is lower, your taxable gain is £1,666.

[drummonds]

You didn't say little trouble.

You said if you invested it in the ftse250 it would now be worth 200k. You were wrong, it's actually 170k, and if you sold it today you would pay 20 - 25k in tax.

 

 

no a pillock like you would only have £170K. someone who takes the advice of their broker will do rather better. they would also avoid paying tax by using bed and breakfast, transfering shares into sipps, isas and trusts. but again only sensible folk.

[Cyclone]

Unless your broker can do magic you would have 170k. I posted the value on the day Cameron took office and the value on the day you made your claim. Your 100k of shares would be worth 170k. You would also have made 15k in dividend. In no world, and with no broker, would they be worth more than that.

 

Why do you persist in the personal attacks? Is it so offensive to you to be challenged or asked for an explanation? At no point have I felt the need to call you names or question your intelligence! Attack the post, not the poster... And it's pretty difficult to attack a post that just asks you to explain isn't it?

 

Bed and breakfasting is apparently now illegal, you can't transfer more than 11k a year into an ISA (although you can bed and isa still), SIPPS are irrelevant, and for the practical purposes of getting your hands on that profit so is a trust.

[drummonds]

 

You mentioned a few options in the last post, one of them is SIPPS, a self invested pension plan. Not much use to you as an income unless you're retired, and you pay tax on pension income, so lets ignore that one.

ISA is another option, you can have just over 11k in stocks and shares ISAs now... So to make 50k tax free, let's be generous and say they return 5% you'd need a million quid in ISAs. Obviously the 11k limit is quite new, it was previously lower, but lets ignore that, at 11k/annum you need to invest the max in ISAs every year for 90 years. After which, you're quite correct, you could indeed make 50k/annum tax free.

 

 

actually you can invest £15240 into a shares isa. if you had consulted your financial advisor he would have told you that. with selected shares making 15-20% it doesn't take too long to build up a large tax free portfolio. i stuck my share options into isas. they pay nice dividends as well as providing excellent growth. selling shares tax free, taking dividends tax free, reclaiming tax on cash investments, selling regular share holdings up to my capital gains limit allows me to earn £50k without paying tax.

I also have a small internet business. it pays the phone bills, broadband, runs a car and contributes towards the heating and decorating. it almost makes enough profit to put me over the tax threshold. :hihi:

 

---------- Post added 01-09-2015 at 15:20 ----------

 

 

I had to look up chattels (notice the spelling), I'm quite happy to learn something knew. Do you invest in antique clocks then? Or do you have 90 years of ISAs built up to provide your income?

 

i think you mean new. (notice the spelling). now you know about them, you might even learn how to use them.

Edited September 1, 2015 by drummonds

[Cyclone]

As of mid last year, yes. So? Has that somehow reduced the tax on a 70k profit to zero?

 

Selected shares, you said "the ftse250". Now you have to be able to select shares that are going to out perform the market.

 

How many years of share options? ISAs launched in 1999... The max you could now have in shares ISAs is £99k

Is that going to make you your 50k/annum tax free income? I don't think it is. 5k/annum maybe.

Dividends don't appear to be tax free though.

 

All taxable benefits from your business, I hope you declare them on your P60.

[drummonds]

Selected shares, you said "the ftse250". Now you have to be able to select shares that are going to out perform the market.

 

.

 

i do believe that is why i pay for financial advice.

 

---------- Post added 01-09-2015 at 15:42 ----------

 

 

How many years of share options? ISAs launched in 1999... The max you could now have in shares ISAs is £99k

.

 

another reason why i don't take advice from you. the stock market has tripled since 1999. you seem to have missed that.

 

---------- Post added 01-09-2015 at 15:43 ----------

 

Dividends don't appear to be tax free though.

 

.

 

yes they are. another reason why i take advice from folk who know.

 

---------- Post added 01-09-2015 at 15:45 ----------

 

Is that going to make you your 50k/annum tax free income? I don't think it is. 5k/annum maybe.

 

my accountant seems to think it does, and the cheques ain't bouncing.

 

---------- Post added 01-09-2015 at 15:45 ----------

 

 

All taxable benefits from your business, I hope you declare them on your P60.

 

i don't declare anything anywhere. my accountant does all that.

[Cyclone]

i do believe that is why i pay for financial advice.

Can you point to anyone that consistently beats the market?

How about Warren Buffet, does he manage it?

another reason why i don't take advice from you. the stock market has tripled since 1999. you seem to have missed that

Well, I'm not purporting to give advice to be fair.

So, you do the maths. What value would you have in your ISA? It wouldn't be 300k... And it wouldn't generate 50k/annum in income.

yes they are. another reason why i take advice from folk who know.

Google says you're wrong.

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=isa%20dividends

 

my accountant seems to think it does, and the cheques ain't bouncing.

Sure, and I totally believe you. I mean, you haven't exaggerated at all, right from the part about 100k becoming 200k when it didn't.

i don't declare anything anywhere. my accountant does all that.

The funny thing about accountants, they want you to sign off on stuff. And ultimately you're the one responsible for the tax returns and submissions.

[drummonds]

Can you point to anyone that consistently beats the market?

 

they wouldn't be much of a financial advisor if they didn't.

[Cyclone]

They'd be very unusual if they did. Most managed funds perform at the level you'd expect from random picks.

[L00b]

Selected shares, you said "the ftse250". Now you have to be able to select shares that are going to out perform the market.

I won't wade into your ongoing spat with drummonds, other than to comment briefly about the above after receiving my SIPP annual statement very recently, showing a 70-ish% performance (total fund value) relative to this time last year, net of contributions.

 

By contrast with my own share trading record (ho-hum) in the period, my fund manager obviously knows a few things that I (still) don't!

 

20/20 hindsight makes me wish I'd been more "ant" and less "grasshopper" this year