Ooh, Time to Start Speculating About LTA Changes Again

Mick70

Possibly another reason why more folk are investing in holiday lets / 2nd homes as retirement investments 

fizio

Mick70 said:

Possibly another reason why more folk are investing in holiday lets / 2nd homes as retirement investments 

Very likely that increased regulations and tax changes will make these less attractive going forward

Malthusian

If someone has observed over the last 20 years:

• pensions being made increasingly more attractive and flexible as an investment vehicle
• increasingly high taxation on second homes and holiday lets
• removal of higher-rate tax deductability for buy-to-let mortgage costs (the only case I can think of where a business has to pay tax on a cost rather than revenue)
• increased tenancy rights (effectively foisting rogue tenants on the private sector and keeping them off the local authority's books as long as possible)
• the increasing difficulty of obtaining and refinancing a buy to let mortgage (relatively easy leverage being the only real advantage buy-to-let has over conventional pension investment)
• never ending political and media campaigns against amateur landlords and second-home-owning grokkles demanding more of the above

and concludes that "I'm going to invest in residential property and holiday lets because it's sAfE aS hOuSeS", it is safe to assume that that's their answer to everything.
If they look at the annual speculation about pension tax relief and conclude pensions are a trap, while ignoring the identical speculation about the taxation and regulation of landlords, it is a classic example of confirmation bias (basing your consumption of news on your opinions rather than the other way around).

RogerPensionGuy

Unless I missed it on the budget, the LTA currently remains frozen until the 6th April 2026, at least its not been currently extended or reduced but, who knows what the future will bring.

I have two friends who are considering letting a single pension(The Bread Winners) grow and grow and taking it later and divorcing to get around the poorly treated LTA, seems a bit drastic but they are not joking, to be clear its two married couples.

I have included a link at the bottom for reference, any views most welcome.

Cheers Roger.

 https://www.thisismoney.co.uk/money/pensions/article-7240513/Should-fake-divorce-wife-split-pension.html

Albermarle

RogerPensionGuy said:

Unless I missed it on the budget, the LTA currently remains frozen until the 6th April 2026, at least its not been currently extended or reduced but, who knows what the future will bring.

I have two friends who are considering letting a single pension(The Bread Winners) grow and grow and taking it later and divorcing to get around the poorly treated LTA, seems a bit drastic but they are not joking, to be clear its two married couples.

I have included a link at the bottom for reference, any views most welcome.

Cheers Roger.

 https://www.thisismoney.co.uk/money/pensions/article-7240513/Should-fake-divorce-wife-split-pension.html

It is difficult to believe anyone would go down this road just to avoid paying tax.