Mortgage Rate Rises

[ci_newman]

That would be massive.

That would really make me wonder what changes to pensions are coming and is paying more into a pension a good idea.

The 25 percent tax free withdrawal is a big one

The comment there was about 25% tax free of lump withdrawl though. With that wording you'd still get 25% tax free, just not on lump sums (although I've nfi how that would work in real terms).

For high rate earners (which due to fiscal drag is probably going to be the whole population when we retire) pensions still offer a better tax incentive even if the 25% is reduced.

 

[413x]

The comment there was about 25% tax free of lump withdrawl though. With that wording you'd still get 25% tax free, just not on lump sums (although I've nfi how that would work in real terms).

For high rate earners (which due to fiscal drag is probably going to be the whole population when we retire) pensions still offer a better tax incentive even if the 25% is reduced.

Its more "what changes might come after that".

I wouldn't be opposed to an upper cap on the 25pc lump sum.

Ie something that affects the top 10 percent or something. But even still. I don't think changes like that should be implemented for older people who planned on what is now.

What we don't want to be doing is putting people off paying into a pension. And a big change (I'm sure it wouldn't be withdrawing the 25pc for example) would certainly make me think about it.

 

[krooton]

Its more "what changes might come after that".

I wouldn't be opposed to an upper cap on the 25pc lump sum.

Ie something that affects the top 10 percent or something. But even still. I don't think changes like that should be implemented for older people who planned on what is now.

What we don't want to be doing is putting people off paying into a pension. And a big change (I'm sure it wouldn't be withdrawing the 25pc for example) would certainly make me think about it.

There already is an upper cap of £268k?

 

[413x]

There already is an upper cap of £268k?

A sensible cap. Let's just hope this is just some stupid rumour. It would probably destroy labour making any meaningful changes to this.

 

[krooton]

A sensible cap. Let's just hope this is just some stupid rumour. It would probably destroy labour making any meaningful changes to this.

Yeah, I doubt very many people end up with total pensions above £1mill, so most are unaffected by that limit. Reducing it even more is targeting the wrong people, instead go after those with MASSIVE pensions who are probably doing various things to avoid paying as much tax as possible.

 

[200sols]

Yeah, I doubt very many people end up with total pensions above £1mill, so most are unaffected by that limit. Reducing it even more is targeting the wrong people, instead go after those with MASSIVE pensions who are probably doing various things to avoid paying as much tax as possible.

People with massive pensions can't avoid tax on withdrawal after the tax free limits. Basically now pensions are in the scope of IHT there is no benefit to dying with a massive pension so People will be spending it and paying tax or paying tax and gifting it to avoid the potential double hit on IHT.

 

[shiver]

It does play on my mind a little that you do your best to make the best financial decisions in your working life now, only for it to potentially get screwed over by a future government

 

[krooton]

People with massive pensions can't avoid tax on withdrawal after the tax free limits. Basically now pensions are in the scope of IHT there is no benefit to dying with a massive pension so People will be spending it and paying tax or paying tax and gifting it to avoid the potential double hit on IHT.

Good for money going into the economy I guess, not so much for kids looking for inheritance.

But as someone receiving zero inheritance, and leaving zero inheritance due to do no kids, I'm ambivalent to it all.

 

[413x]

Good for money going into the economy I guess, not so much for kids looking for inheritance.

But as someone receiving zero inheritance, and leaving zero inheritance due to do no kids, I'm ambivalent to it all.

I expect to receive inheritance. And I fully support IHT as it's a huge wealth divider.
Pensions should be included as should it all.

 

[matt100]

I've gotten myself into some proper arguments by sharing my views on 100% IHT and I also am in the middle of receiving inheritance.. it's under the threshold just and it's a welcome gift but I'd sooner we lived in a world where it didn't exist.

 

[unwashed potato!]

It does play on my mind a little that you do your best to make the best financial decisions in your working life now, only for it to potentially get screwed over by a future government

Or boosted by future governments.

You can't dismiss the fact that schools educate kids, who become doctors, who make better services, better roads, better vehicles. Governments guide this some what and progress benefits everyone. Yes you may lose at points due to changes a government make, but you definitely do benefit indirectly in loads of other ways

 

[413x]

I've gotten myself into some proper arguments by sharing my views on 100% IHT and I also am in the middle of receiving inheritance.. it's under the threshold just and it's a welcome gift but I'd sooner we lived in a world where it didn't exist.

Where IHT doesn't exist?

 

[b0rn2sk8]

Where IHT doesn't exist?

I think he means 100% IHT e.g. you get no inheritance.

For whatever reason there seems to be a large support for a wealth tax but no one like the one wealth tax we actually have which is also very efficient and has near zero distortion on the economy.

Where as the wealth tax tax people keep asking for (2% over X million) can be pretty distortionary and will create a ‘dry’ tax charge in a lot of cases (tax charges are where you get a tax bill but there is no cash to pay it e.g. sale of an asset, salary etc.).

 

[matt100]

I think he means 100% IHT e.g. you get no inheritance.

For whatever reason there seems to be a large support for a wealth tax but no one like the one wealth tax we actually have which is also very efficient and has near zero distortion on the economy.

Where as the wealth tax tax people keep asking for (2% over X million) can be pretty distortionary and will create a ‘dry’ tax charge in a lot of cases (tax charges are where you get a tax bill but there is no cash to pay it e.g. sale of an asset, salary etc.).

I do mean that yes, I support 100% IHT

What is the wealth tax we have?

 

[b0rn2sk8]

I do mean that yes, I support 100% IHT

What is the wealth tax we have?

IHT. It’s a wealth tax.

 

[FirebarUK]

If I recall correctly, Trusses 'ideas' damn near crashed the entire UK economy.

Just because a person has ideas, it doesn't mean they are good ones.

At least they were aiming for growth in *some fashion*. The current lot are aiming for *nothing* at all and still screwing it up, we're in for a seriously bad hiding. This doesn't bode well for mortgages.

 

[200sols]

At least they were aiming for growth in *some fashion*. The current lot are aiming for *nothing* at all and still screwing it up, we're in for a seriously bad hiding. This doesn't bode well for mortgages.

They are not aiming for *nothing* at all, that is just not true. Anyone who thinks such has probably been reading the daily mail.

 

[Hagar]

They are not aiming for *nothing* at all, that is just not true. Anyone who thinks such has probably been reading the daily mail.

They are hitting the wrong targets though. Incorporating NI into income tax and making it lifetime* rather than pension cut off age would have been far better for the economy than the job hitting employer surcharge.

Still we may well get both.

*I am a pensioner.

 

[200sols]

They are hitting the wrong targets though. Incorporating NI into income tax and making it lifetime* rather than pension cut off age would have been far better for the economy than the job hitting employer surcharge.

Still we may well get both.

*I am a pensioner.

We can debate all we want about what they've done in the proper thread but people saying they are aiming for nothing, its just not true.

 

[happy_2008]

Got contacted by my mortgage advisor today that renewal in Dec-25 would be approximately at 3.99% on a 2 year fixed with no product fee.