How panic-y have you got ?

Kernel_Sanders

Apodemus wrote: »

Before my time as a taxpayer, but I would think that 1968 must have been a bit rough, with investment income being taxed at 136%!

OK as noone else seems to want to, I'll stick my neck out here and say I don't think it's ever exceeded 98%.

mf78

The only panic I've had was whether I can scrape together another handful of cash to invest with before the markets recover and prices go up

ChiefGrasscutter

Apodemus wrote: »

Before my time as a taxpayer, but I would think that 1968 must have been a bit rough, with investment income being taxed at 136%!

Ah ...the delights of investment income surcharge of 15% (?as I recall?)on top of all the other income tax rates!
Correct to the other poster: the max this all ended up at was indeed a 98% marginal tax rate.
The other delights of that period was that for a married man any income your wife had was added onto yours before the tax was deducted so in effect 100% of her income was taxed at your top marginal rate.

still - try the stockmarket 1973 to 1974
The index - then called the FT30 lost I think something like 75% of its value.

Apodemus

From HMRC:

Special rates have been introduced twice within the post-war years, causing income tax in certain circumstances to exceed 100%.
For 1947-48 a special contribution was payable when a person’s total income exceeded £2,000. For investment income over £5,000 it was 50%. So with income tax at 45% and surtax at 52.5%, the effective rate was 147.5%.

In 1967-68, the special charge was imposed. For investment income over £8,000, the rate was 45% which - with income tax at 41.25% and surtax at 50% - meant a total rate of 136.25%.

http://webarchive.nationalarchives.gov.uk/20130217082231/http://www.hmrc.gov.uk/history/taxhis7.htm

Kendall80

mf78 wrote: »

The only panic I've had was whether I can scrape together another handful of cash to invest with before the markets recover and prices go up

Same here but there is that concern that the markets still have some 'correcting' to do.

dunstonh

Kendall80 wrote: »

Same here but there is that concern that the markets still have some 'correcting' to do.

If you go by average timing, then you could say that we are due a crash rather than a correction. Problem is that the markets don't work that way.

Malthusian

Same here but there is that concern that the markets still have some 'correcting' to do.

In the long run it is impossible to guess where the bottom is of any particular correction. Some of the world's finest minds have wasted those minds on trying to square that particular circle, and I doubt that my lifetime is going to be the one where someone suddenly works out how to time the market.

What we do know with certainty is that the longer you delay, the more dividends you miss out on. So any investor with money to invest should invest as soon as they can and stop wasting mental energy on guessing the bottom. If you are investing for the long term then it doesn't matter in the slightest whether the market falls further over the next few weeks.

saver861

In April I put in 2 x £2880 into SIPP's for myself and the missus, to get the tax advantage. FTSE was at its highest at over 7000. Then the correction started! Still, we got the £720 each a few months later when FTSE was about 6500. Thought I would put in this years £2880 allowance at that time as well!!

Put all that in and then FTSE went down another 500 or so!!

I'm not sure I would have made it as a Financial Advisor!!

AlanP_2

saver861 wrote: »

In April I put in 2 x £2880 into SIPP's for myself and the missus, to get the tax advantage. FTSE was at its highest at over 7000. Then the correction started! Still, we got the £720 each a few months later when FTSE was about 6500. Thought I would put in this years £2880 allowance at that time as well!!

Put all that in and then FTSE went down another 500 or so!!

I'm not sure I would have made it as a Financial Advisor!!

Some people might say you are an ideal candidate based on that

Posting IFA's excepted of course :beer:

Thrugelmir

saver861 wrote: »

I'm not sure I would have made it as a Financial Advisor!!

What do they know that you don't?

Out of curiosity what are you invested in?