Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
Page 1
    • jem16
    • By jem16 1st Mar 15, 12:59 PM
    • 18,646 Posts
    • 11,459 Thanks
    jem16
    • #2
    • 1st Mar 15, 12:59 PM
    • #2
    • 1st Mar 15, 12:59 PM
    Can I take my civil service /mod pension and invest it into a B&B for me to run/own when I reach 55
    Originally posted by mark911
    The Civil Service pension is a Defined Benefit scheme which will allow a tax-free lump sum and monthly pension. You will be able to take a maximum of 25% tax free although this is unlikely to be your best option as the index-linked pension is very valuable.

    You will also lose about 25% of your pension by taking it 5 years early - assuming your normal retirement date is age 60.
    • Aegis
    • By Aegis 1st Mar 15, 1:00 PM
    • 5,076 Posts
    • 3,403 Thanks
    Aegis
    • #3
    • 1st Mar 15, 1:00 PM
    • #3
    • 1st Mar 15, 1:00 PM
    No, a B&B would count as residential property and therefore not be a permitted investment within a pension.
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
    • atush
    • By atush 1st Mar 15, 1:17 PM
    • 17,556 Posts
    • 11,069 Thanks
    atush
    • #4
    • 1st Mar 15, 1:17 PM
    • #4
    • 1st Mar 15, 1:17 PM
    It would be unwise in the extreme. Instead, sell your house you live in, and use that to buy a B&B when you retire and use your pension to live on when the B&B doesn't give the income you require.

    And if it should give you the income you require, put some of that income into a new DC pension.
    • Andy L
    • By Andy L 1st Mar 15, 1:28 PM
    • 9,671 Posts
    • 8,691 Thanks
    Andy L
    • #5
    • 1st Mar 15, 1:28 PM
    • #5
    • 1st Mar 15, 1:28 PM
    No. The changes to pension rules allowing you to draw it all out as cash specifically do not apply to the unfunded public sector schemes of which the CS scheme is one.
    • kidmugsy
    • By kidmugsy 1st Mar 15, 1:43 PM
    • 12,480 Posts
    • 8,846 Thanks
    kidmugsy
    • #6
    • 1st Mar 15, 1:43 PM
    • #6
    • 1st Mar 15, 1:43 PM
    Instead, sell your house you live in, and use that to buy a B&B
    Originally posted by atush
    If one also took a mortgage on the B&B, the interest would presumably be an allowable expense against income for tax purposes, would it?
    • atush
    • By atush 1st Mar 15, 5:55 PM
    • 17,556 Posts
    • 11,069 Thanks
    atush
    • #7
    • 1st Mar 15, 5:55 PM
    • #7
    • 1st Mar 15, 5:55 PM
    I would think so, like any business
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

96Posts Today

1,815Users online

Martin's Twitter