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Second Pensions
blossomway
Posts: 3 Newbie
I have a second pension pot.
I am interested in investing in a holiday let property to generate income but want to avoid losing a lot of the pension money in tax if I draw it out.
What is the ideal option to achieve this?
I am interested in investing in a holiday let property to generate income but want to avoid losing a lot of the pension money in tax if I draw it out.
What is the ideal option to achieve this?
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Comments
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What is the ideal option to achieve this?
Dont use the pension. The pension is tax free (outside of estate, no CGT and income tax where it is currently). Taking out the pension and taking a tax hit to buy a taxable asset is probably not a good idea. Have you got other funds you can use?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
blossomway wrote: »I have a second pension pot.
I am interested in investing in a holiday let property to generate income but want to avoid losing a lot of the pension money in tax if I draw it out.
What is the ideal option to achieve this?
Are you happy paying 3% extra stamp duty?0 -
Not sufficient to buy it outright.
As it is in a fund which gets me some interest I wondered if I could shift it to a property that would earn rather more.
Oh well. Maybe stick with what I have got.0 -
The object was to deliver income without sacrificing the capital unnecessarily.0
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blossomway wrote: »The object was to deliver income without sacrificing the capital unnecessarily.
You can do that within the pension. Dependent on the type of pension and who it is held with you can draw money out as you like, 25% tax free and the rest taxed at your marginal rate as long as you are over 55.0 -
As it is in a fund which gets me some interest I wondered if I could shift it to a property that would earn rather more.
Why do you have it in an interest paying fund? How about changing the funds to something that could get you more?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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