Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: Varche on 29 September 2014, 15:18:13
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Well I think I will be better off dead under George Osbornes new tax rules?! There is something you don't expect to ever hear yourself say. :o
http://www.bbc.co.uk/news/uk-politics-29406191
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SWMBO is still working :y and gets death in service of thousands, all mine :y :y Better off dead ??? NO! she's nice to me, besides the stropy stuff. ;) ;D ;D ;D
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I'm already using my company pension and it's spend, spend ,spend................................no, not really but.......... ;D ;D ;D ;D ;)
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SWMBO is still working :y and gets death in service of thousands, all mine :y :y Better off dead ??? NO! she's nice to me, besides the stropy stuff. ;) ;D ;D ;D
I have that as well, well, I guess I don't get it....... ::) :D
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another load of rubbish from that man.
The reality is that very very few people ever worried about paying this tax - it was only ever relevant for those who had large pension post anyway. This that did have undrawn funds over 75 simply managed around the tax - by drawing their funds or paying it as taxable income to dependents.
Anyway, nice headline but no substance. Useful to cover up Mr Paisley pajamas however
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Just shows how little people understand pensions.
It doesn't mean anything to those already with an annuity, state pension, final salary pension or some occupational pensions. This change only affects people who have a crystallised pension in drawdown (typically early retirees at 55-65), or uncrystallised pensions for those over 75. Spouses and dependent children already could inherit these tax free as pensions. Others were charged 55% tax - and it's only these others that may benefit. If you don't know what a crystallised/uncrystallised drawdown pension is, then chances are it doesnt affect you.
So what happens after these changes? Say a rich elderly relative dies and leaves you a pension pot of £200K. This is paid to you and taxed at your marginal rate. If you earn the national average wage of £25K, then that makes your income for the year £225K, so you're taxed at 0% on the first £10K, 20% on the next £30K, 40% on the next £110K, and 45% on the remaining £75K. So a tax take of around £84K. And you'll probably lose any child benefit for that year too.
Probably the best thing you could do is stick the money into your own pension pot, altough you will be limited to £25 p/a due to your wage.
The change probaby is good news for some, but I don't think it deserves headline news treatment because it'll affect hardly anyone.
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SWMBO is still working :y and gets death in service of thousands, all mine :y :y Better off dead ??? NO! she's nice to me, besides the stropy stuff. ;) ;D ;D ;D
I have that as well, well, I guess I don't get it....... ::) :D
Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! ::) ::) ;D ;D ;D ;D ;)
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SWMBO is still working :y and gets death in service of thousands, all mine :y :y Better off dead ??? NO! she's nice to me, besides the stropy stuff. ;) ;D ;D ;D
I have that as well, well, I guess I don't get it....... ::) :D
Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! ::) ::) ;D ;D ;D ;D ;)
How is that patio, Lizzie? :-X
;)
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SWMBO is still working :y and gets death in service of thousands, all mine :y :y Better off dead ??? NO! she's nice to me, besides the stropy stuff. ;) ;D ;D ;D
I have that as well, well, I guess I don't get it....... ::) :D
Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! ::) ::) ;D ;D ;D ;D ;)
How is that patio, Lizzie? :-X
;)
It has steam trains running over it Kevin :o :o ;D ;D ;D ;)!!
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It has steam trains running over it Kevin :o :o ;D ;D ;D ;)!!
Nice touch. :D
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Death in service of ten times salary here ??? :-\......slightly concerned seeing as I have a long and rather deep hole in the back garden at the moment.
On the tax subject, I suspect it may have more impact given the new options for pensions e.g. not having to buy an annuity
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Yes, it might not change much today, but might open up an inheritance tax avoidance scheme, depending on the small print.
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Death in service of ten times salary here ??? :-\......slightly concerned seeing as I have a long and rather deep hole in the back garden at the moment.
On the tax subject, I suspect it may have more impact given the new options for pensions e.g. not having to buy an annuity
You haven't had to buy an annuity since 2006, though many people were unaware even though successive governments re-announced the same change several times. :y
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Yes, it might not change much today, but might open up an inheritance tax avoidance scheme, depending on the small print.
Not sure how that can work. £40K p/a limit on gross contributions, and a £1.25M lifetime allowance, plus withdrawls at marginal tax rates (45% on high amounts), versus 40% Inheritance tax on amounts over £325K per person/£650K per couple? No doubt someone will find a use for it, but I can't see anything that will help mere mortals like us.
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This isn,t for the likes of us who drive around in cars which are (at best) ten / eleven years old. Just another way
Georgie boy can help his rich mates get even richer. ;)
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SWMBO is still working :y and gets death in service of thousands, all mine :y :y Better off dead ??? NO! she's nice to me, besides the stropy stuff. ;) ;D ;D ;D
I have that as well, well, I guess I don't get it....... ::) :D
Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! ::) ::) ;D ;D ;D ;D ;)
No Lizzie, dare I say that? Yes I do..... :D :D 3 x salary, it's my best option given my health record as any meaningful life insurance is unafordable, and the one I do have of old, was a poor purchase...... >:( :( >:(
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SWMBO is still working :y and gets death in service of thousands, all mine :y :y Better off dead ??? NO! she's nice to me, besides the stropy stuff. ;) ;D ;D ;D
I have that as well, well, I guess I don't get it....... ::) :D
Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! ::) ::) ;D ;D ;D ;D ;)
No Lizzie, dare I say that? Yes I do..... :D :D 3 x salary, it's my best option given my health record as any meaningful life insurance is unafordable, and the one I do have of old, was a poor purchase...... >:( :( >:(
Ah right Vamps. I am now getting curious. I am sure my ex always told me it was three quarters...............but was it really more................a LOT more.......and it was an effort (successful one!!) to keep me off the scent??!! :o :o :o :o
Seriously though we both had successful senior managerial careers in the same outfit and I left that which I had worked for since aged 15 after 28 years service, and that seems such a long time ago now and perhaps our "in death benefit" was much better than I remember. We both worked for a firm whose mother company was a multi-billion dollar tobacco company in the USA and the group pension scheme (which I am enjoying now) was considered one of the best in the industry. So the three quarters of salary that I thought I remembered is probably wrong! ::) ::) :-[
Whatever it was I know we both joked how we both would be better off dead than alive!!
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SWMBO is still working :y and gets death in service of thousands, all mine :y :y Better off dead ??? NO! she's nice to me, besides the stropy stuff. ;) ;D ;D ;D
I have that as well, well, I guess I don't get it....... ::) :D
Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! ::) ::) ;D ;D ;D ;D ;)
No Lizzie, dare I say that? Yes I do..... :D :D 3 x salary, it's my best option given my health record as any meaningful life insurance is unafordable, and the one I do have of old, was a poor purchase...... >:( :( >:(
Ah right Vamps. I am now getting curious. I am sure my ex always told me it was three quarters...............but was it really more................a LOT more.......and it was an effort (successful one!!) to keep me off the scent??!! :o :o :o :o
Seriously though we both had successful senior managerial careers in the same outfit and I left that which I had worked for since aged 15 after 28 years service, and that seems such a long time ago now and perhaps our "in death benefit" was much better than I remember. We both worked for a firm whose mother company was a multi-billion dollar tobacco company in the USA and the group pension scheme (which I am enjoying now) was considered one of the best in the industry. So the three quarters of salary that I thought I remembered is probably wrong! ::) ::) :-[
Whatever it was I know we both joked how we both would be better off dead than alive!!
Death in service benefit is often only payable to the legal spouse. Some schemes do now permit civil partners. If you divorce, you will lose that benefit.
In a divorce, the initial premise is that ALL assets are split equally. That means that the starting point was that you are entitled to half his pension at the time of divorce. You can chose to take more or less than half in exchange for more or less of something else - like the house. Google "Pension Sharing Order". If you/your solicitor didn't include the value of his pension in the financial split agreement, then you/he f***ed up big time.
Pensions can be very valuable assets - often worth more than the house. Someone on a final salary pension paying £30K p/a would have a notional pension pot value of around £600-700K.
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SWMBO is still working :y and gets death in service of thousands, all mine :y :y Better off dead ??? NO! she's nice to me, besides the stropy stuff. ;) ;D ;D ;D
I have that as well, well, I guess I don't get it....... ::) :D
Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! ::) ::) ;D ;D ;D ;D ;)
No Lizzie, dare I say that? Yes I do..... :D :D 3 x salary, it's my best option given my health record as any meaningful life insurance is unafordable, and the one I do have of old, was a poor purchase...... >:( :( >:(
Ah right Vamps. I am now getting curious. I am sure my ex always told me it was three quarters...............but was it really more................a LOT more.......and it was an effort (successful one!!) to keep me off the scent??!! :o :o :o :o
Seriously though we both had successful senior managerial careers in the same outfit and I left that which I had worked for since aged 15 after 28 years service, and that seems such a long time ago now and perhaps our "in death benefit" was much better than I remember. We both worked for a firm whose mother company was a multi-billion dollar tobacco company in the USA and the group pension scheme (which I am enjoying now) was considered one of the best in the industry. So the three quarters of salary that I thought I remembered is probably wrong! ::) ::) :-[
Whatever it was I know we both joked how we both would be better off dead than alive!!
I can only quote mine, it may be very different in your profession........... :-\ :-\