At What Portfolio Size Would You Consider Professional Advice?

Bostonerimus1

In such grey areas the only morality that applies is that of the person in the grey themselves. Don't judge others etc. If the law is broken then it's up to the authorities to prosecute and if the boundaries are stretched then there might be a need for better legislation.

When I first retired I had a high net worth, but very low income which triggered lots of benefits like subsidized gas, electricity, food and healthcare. I did not claim these benefits, but someone else in the same situation might and I would not want to criticize that decision. On the other hand I've been paying the ridiculously inexpensive expat Class 2 NI for over 30 years when I could, and maybe should have, paid far more. Someone in Government/HMRC eventually noticed the issue and recently eliminated expat Class 2 NI, but after I qualified for full SP.😉

dunstonh

In the past, it used to be that tax avoidance was legal, such as using annual allowances, pensions, ISAs, etc., and that tax evasion was illegal. However, over the years the word "tax avoidance" has been muddied.So it now includes what would have been evasion in the past, but also includes totally legal options as well.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/82078106#Comment_82078106

I feel that minimizing the tax you pay within the legal tax landscape is the duty of the financially literate tax payer. Of course you should feel good about what you do, which might mean that the less scrupulous person might push the law more.

Before I return to the UK I will make gifts to family to reduce my estate and avoid some eventual UK IHT. I'm already moving money to a US tax free retirement account that is also free of UK income tax so I can avoid the higher levels of UK tax on withdrawals. I will also pay a tax professional to organize my finances to be tax efficient using the new FIG regime and I will definitely use gifts from excess income to further avoid IHT.

GeoffTF

I feel that minimizing the tax you pay within the legal tax landscape is the duty of the financially literate tax payer.

I would not go that far. I would not pay the financial services industry £9K to save £10K in tax. I would see the £10K as money usefully employed, and the £9K as money lost. £1K to save £10K in tax would be a tricky one. 10% to 15% of public spending is wasted according to groups like the Tax Payers' Alliance. I expect that they are bigging the numbers up, so let's say 10%, but charities waste money too. If you have excess money, you have to decide how it would be best employed. Perhaps £1K to save £10K in tax is a reasonable threshold.

Fortunately, I have a free ISA and a free SIPP. I could get about 6% higher return by buying TE28 rather than TN28, a difference of about 0.24%. (I would not gain anything obvious by going for higher coupons on my longer dated gilts, which are index linked.) Beyond that I am not paying anything for tax mitigation.