Protecting pensions from politicians - or preparing for a Labour coalition

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  • Keep_pedalling
    Keep_pedalling Posts: 16,591 Forumite
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    zagfles wrote: »
    There's a point re the capital gain within the ISA, which is the main tax break of an ISA for basic rate taxpayers.

    But the other stuff - inheritance is subject to IHT, bed and ISA is subject to CGT. Of course the amounts could be within the respective allowances, but that's an issue with IHT and CGT, not ISAs.

    .

    Inheritances and capital gains are unearned income, it hardly seems fair that you should be able to rake in unlimited amounts of unearned income and pay no tax, when everyone else pays tax on earned income.
  • justme111
    justme111 Posts: 3,508 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
    I must miss something - how can they be unlimited if there is limited annual ISA allowance?
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
    Often people seem to use this word mistakenly where "quandary" would fit better.
  • zagfles
    zagfles Posts: 20,318 Forumite
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    Keep_pedalling wrote: »
    Inheritances and capital gains are unearned income, it hardly seems fair that you should be able to rake in unlimited amounts of unearned income and pay no tax, when everyone else pays tax on earned income.
    There is inheritance tax and capital gains tax.

    And of course the money inherited would often be saved earned income on which tax would have been paid. Inheritance tax might also have been paid. So do you think it should be taxed a third time as income on the recipient?
  • Anonymous101
    Anonymous101 Posts: 1,869 Forumite
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    zagfles wrote: »
    There is inheritance tax and capital gains tax.

    And of course the money inherited would often be saved earned income on which tax would have been paid. Inheritance tax might also have been paid. So do you think it should be taxed a third time as income on the recipient?

    Bloody hell at this rate it'll be taxed every time its moved from one form of saving / investment to another! :money:
  • Anonymous101
    Anonymous101 Posts: 1,869 Forumite
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    justme111 wrote: »
    I must miss something - how can they be unlimited if there is limited annual ISA allowance?

    I think the point was that once it was invested into the ISA then any income within and back from the ISA is tax free with no limits.
  • justme111
    justme111 Posts: 3,508 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
    Going back to the topic and broadening it - I am baffled by democracy as we have it in this country. It is like asking a bunch of 5 y.o. ones to decide how they want to live and what headmaster do they want. Short termism, lies and populism instead of an intelligent debate - or an I missing the latter one and it happens somewhere?
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
    Often people seem to use this word mistakenly where "quandary" would fit better.
  • atush
    atush Posts: 18,726 Forumite
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    I tried explaining income tax to my twin 6 year olds. That didnt go over well.
  • Malthusian
    Malthusian Posts: 10,931 Forumite
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    edited 13 June 2017 at 11:19AM
    pollypenny wrote: »
    To stash money in the IOM requires considerable contrivance

    Not at all, you can open an account with Nationwide International or Old Mutual International or the Isle of Man financial provider of your choice by a simple cheque or cash transfer, same as any UK bank.

    To hide money in the IOM would require contrivance but the same would be true of anywhere. *edit* And the IOM would be a very stupid place to attempt to hide money offshore because there are so many reporting channels to HMRC. You would be more likely to successfully hide your money in the UK than in the Isle of Man - by investing in black market enterprises like minicab firms, loansharking, drugs or something.
    Anonymous101 wrote:
    Bloody hell at this rate it'll be taxed every time its moved from one form of saving / investment to another!

    Half the country voted for exactly that.
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
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    Malthusian wrote: »
    N



    Half the country voted for exactly that.

    So my idea of hiding my savings wasn't as stupid as I thought it was ...... :)
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • woolly_wombat
    woolly_wombat Posts: 819 Forumite
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    seven-day-weekend wrote: »
    So my idea of hiding my savings wasn't as stupid as I thought it was ...... :)

    There's a big difference between maximising legal tax shelters such as ISAs and pensions and 'hiding savings'.

    Having said that, some of us are just about old enough to remember a former Shadow Chancellor warning in 1973/74 that there would be "howls of anguish from those rich enough to pay over 75% on their last slice of earnings" and that he would "squeeze property speculators until the pips squeak".

    When he was Chancellor he was forced, in 1976, to go cap-in-hand to the IMF for a loan.
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