losing personal allowance

jonnyp1

hello,
I was medically retired in 2012 and am 55. I have 16k pension but have btl that take me over 100k, i wonder what i can do to avoid losing my personnel allowance. Could i take out a pension even though i am being paid pension. What would be the maximum i could pay in and get relief? Any other options?
jonnyp

jem16

You can pay a maximum of £2880 which will be grossed up to £3600.

Other options would be Gift Aid.

somethingcorporate

If you have such a large B2L take advice from an accountant, a company structure of some sort may be more beneficial to you.

kidmugsy

This may be a good time to shed some BTL. The future tax changes will hit you pretty hard if you've got mortgage loans on your properties. Or follow somecorp's advice.

jonnyp1

no mortgages so dont believe changes will affect me? I did look at putting them in company, but doesnt that just rack up cash in the company, which i have to pay as much tax on when i take it out?
jon

Cook_County

You can become non-UK resident and move to a regime with a lower tax rate than the UK.

kidmugsy

jonnyp1 wrote: »

no mortgages so dont believe changes will affect me?

Fair enough. Given what a large income £100k p.a. is, I'd still think it might be worth discussing incorporation with an accountant. For example, do you have a spouse or a child that you could make a shareholder, so that your dividends left you on less than £100k p.a.?

somethingcorporate

Entrepreneurs relief allows you to wind up companies and take a huge chunk of profit without paying tax on it.

A decent specialists would have been able to tell you this (and probably a number of other tax avoiding possibilities) in a heartbeat, hence it worth you taking proper advice.

https://www.gov.uk/entrepreneurs-relief/eligibility