Retiring landlord

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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    There are a lot of fans of Vanguard who have no financial connection with the company.
    Theres even a group / movement called "Bogleheads" named after the founder of Vanguard.
  • dunstonh
    dunstonh Posts: 116,380 Forumite
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    However, he makes repeated references to a company/website called 'Vanguard' and I am wondering whether he might have vested interests here and whether this should be taken with a pinch of salt?

    Vanguard has an almost religious-like following. Once bought into the cult of Vanguard, you often find some people using them can't see any other options any more. They will often compromise their investing if Vanguard dont offer a fund in an area they should be investing in.

    Vanguard is a fund house and has a number of good funds worth considering in a portfolio but they are not necessarily the best in all areas.

    The other thing to remember is that publications go out of date. Vanguard came to the UK and shook the market bringing charges right down. The market responded and now there are options better than Vanguard in some areas. The publication may not be upto date with the current best options.
    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.
  • Terron
    Terron Posts: 846 Forumite
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    AnotherJoe wrote: »
    I believe so, at the point you put it into the company. Otherwise it would be a magic trick to evade and everyone would do it.


    Well if the OP does enough work looking after his properties and transfers tham all into tje company he would be able to defer the CGT.


    The simple trick to avoid the CGT is to hang on to them until you die when it gets cancelled and replaced by IHT. If the properties increase in value you can take an income from them by remortgaging.for increasing amounts.That is more difficult now due to the change in the way rental income is taxed
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Feetup wrote: »
    In response to recommendations on this site, I have bought John Edwards booklet 'DIY Simple Investing', which appears to offer much calming common sense. However, he makes repeated references to a company/website called 'Vanguard' and I am wondering whether he might have vested interests here and whether this should be taken with a pinch of salt?

    For a more balanced read. I'd suggest.
    Harriman's New Book of Investing Rules: The Do's and Dont's of the World's Best Investors

    A book that one can dip in and out of. You can decide for yourself which approach you feel most comfortable with. Or whether to adopt a mix and match approach in constructing your portfolio. As one size certainly doesn't fit all.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    edited 10 April 2019 at 10:17PM
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    Feetup wrote: »
    In response to recommendations on this site, I have bought John Edwards booklet 'DIY Simple Investing', which appears to offer much calming common sense. However, he makes repeated references to a company/website called 'Vanguard' and I am wondering whether he might have vested interests here and whether this should be taken with a pinch of salt?

    Vanguard is one of the largest fund companies in the world and it's philosophy of keeping costs low, things simple and using index funds is followed by many people. If you see someone pushing Vanguard it won't be to get some financial gain it's usually because they advocate the investing style and honestly thing it's a good way for the regular investor to go.

    So with that out of the way, I would put the proceeds of your real estate empire into a balanced portfolio of index funds and also put a couple of years spending into the bank as an emergency fund.....could be Vanguard funds or the diversified index funds offered by people like HSBC, Blackrock etc. You might also put some in National Savings if you want a bit of interest and a guarantee.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Terron wrote: »
    Well if the OP does enough work looking after his properties and transfers tham all into tje company he would be able to defer the CGT.


    The simple trick to avoid the CGT is to hang on to them until you die when it gets cancelled and replaced by IHT. If the properties increase in value you can take an income from them by remortgaging.for increasing amounts.That is more difficult now due to the change in the way rental income is taxed

    Not my area at all but I was under the strong impression from other more knowledgeable posters here that transferring into a company was a CGT triggering event ?
  • Terron
    Terron Posts: 846 Forumite
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    AnotherJoe wrote: »
    Not my area at all but I was under the strong impression from other more knowledgeable posters here that transferring into a company was a CGT triggering event ?


    It is, but there is a thing called Incorporation Relief that could apply - https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65715



    There are also a number of schemes for avoiding/evading it that I don't fully understand.
  • Feetup
    Feetup Posts: 10 Forumite
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    If I sell the 'Buy-to Let' properties and duly pay the CGT, then kick the bucket, does my estate have to pay Inheritance Tax as well?
  • Terron
    Terron Posts: 846 Forumite
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    Feetup wrote: »
    If I sell the 'Buy-to Let' properties and duly pay the CGT, then kick the bucket, does my estate have to pay Inheritance Tax as well?


    I think so
  • Malthusian
    Malthusian Posts: 10,944 Forumite
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    Feetup wrote: »
    If I sell the 'Buy-to Let' properties and duly pay the CGT, then kick the bucket, does my estate have to pay Inheritance Tax as well?

    Yes.

    But the CGT reduces the value of your estate to pay tax on, so while it's still double taxation, it's not double tax on the whole lot.
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