Marginal 40% tax rate payers

Blacklight

carolt wrote: »

I've been locked out of buying a house

Put a sock in it Carol.

Your combined household income is around £70k. Even if you didn't want to overstep your precious 3.5x multiplier you can still comfortably anything up to £257,000, with a 5% deposit.

Lloyds are doing 95% FTB mortgage at 4.99%, which is a hell of a lot less than everyone was paying three years ago.

I guess you'll just have to wait until interest rates go up before things cheaper.

chewmylegoff

Mr_Mumble wrote: »

Just stick the extra £6k into a pension to get yourself below the threshold. Keep paying the excess, above basic rate tax, into a pension until you earn megabucks and the marginal effect of the child benefit loss is small, simples.

i'm not sure this will actually work as i presume that eligibility will be calculated on your taxable income. i.e. i think they'll be assessing it on whether you earn over whatever the threshold is, not whether you physically pay 40% tax on at least 1p of income.

DervProf

carolt wrote: »

So you want me to pay for rising house prices despite the fact that I've been locked out of buying a house?

Not very joined-up thinking...

I don`t think that`s a "very joined-up" answer.

Read what I posted again. I didn`t say that I wanted you, or anyone else to pay. I was talking generally about the unfairness of the tax system. Overall, most of us will end up paying for the "boom", one way or another.

chucky

ukcarper wrote: »

I dispute you have been locked out of buying a house if your income is in excess of £50k and oh is paying £250 a month to commute.

to be fair to her she doesn't want to pay a high price for a house, which is obviously her perogative.

however, it all doesn't add up just like the child benefit argument. on one post she can't afford to lose it but on another she can't.

you should see her comments on the benefit bashing threads - she has no sympathy for people on benefits, but look at her now... she does play the victim line very well by saying that she is priced out.

it tells us a hell of a lot about the type of person and role model that she is.

michaels

Its 41.5% actually

drc

It's interesting that if you are a higher rate taxpayer earning £45k per year you are regarded as "rich", whereas the famillies on benefits "earning" £45k per year are regarded as poor.

ukcarper

chucky wrote: »

to be fair to her she doesn't want to pay a high price for a house, which is obviously her perogative.

however, it all doesn't add up just like the child benefit argument. on one post she can't afford to lose it but on another she can't.

you should see her comments on the benefit bashing threads - she has no sympathy for people on benefits, but look at her now... she does play the victim line very well by saying that she is priced out.

it tells us a hell of a lot about the type of person and role model that she is.

I can understand her not wanting to buy a house at the moment because she thinks that prices might fall but to say she is locked out is not true. I live 45mins from waterloo by train and the season ticket cost is about £250 per month and you could buy a nice 3-bed semi for £250k.

chucky

ukcarper wrote: »

I can understand her not wanting to buy a house at the moment because she thinks that prices might fall but to say she is locked out is not true. I live 45mins from waterloo by train and the season ticket cost is about £250 per month and you could buy a nice 3-bed semi for £250k.

i do too - but you can't be shifting between your priced out and you're expecting price falls.

they are two completely different things.

Mr_Mumble

chewmylegoff wrote: »

i'm not sure this will actually work as i presume that eligibility will be calculated on your taxable income. i.e. i think they'll be assessing it on whether you earn over whatever the threshold is, not whether you physically pay 40% tax on at least 1p of income.

If you put the money into a pension it is not classified as taxable income. The method is already being advocated by the pensions industry. It's possible there'll be a complete revamp of taxation to get around this tax avoidance but that seems highly unlikely imho.

blueboy43

Mr_Mumble wrote: »

If you put the money into a pension it is not classified as taxable income. The method is already being advocated by the pensions industry. It's possible there'll be a complete revamp of taxation to get around this tax avoidance but that seems highly unlikely imho.

Not strictly true.

Pension contributions are reliefs on income tax.

If you are a higher rate tax payer and contribute to a personal pension then the pension claims 20% back, and you have to claim the rest via self assessment or contacting your tax office.

The words used by Osbourne were "earning more than £44k"