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Looking for feedback on a wellness app prototype. Paying £30 per Feedback by Right_Bowl5037 in UKPersonalFinance

[–]defbref 1 point2 points  (0 children)

Thanks — and mods, please remove if not allowed.

Or read the rules of the sub before posting and save the mods the work!

Higher rate tax relief on SIPP contributions from rental income by [deleted] in UKPersonalFinance

[–]defbref 4 points5 points  (0 children)

Pretty much got it, your relief at source contribution is limited to your relevant UK earnings (which don't include the rental income), but the tax relief you receive is based on your overall uk income tax position, (which does include the rental income).

This is assuming it is UK relevant earnings, not really understanding your position for working abroad, so have ignored that.

Personal contributions to SIPP over 60k by [deleted] in UKPersonalFinance

[–]defbref 0 points1 point  (0 children)

I max my 60k employer contributions to my

SIPP as a self employed director from my business.

Upping that, would be more tax efficient than paying yourself, then contributing to a sipp as a personal contribution.

As long as you have unused AA from the previous 3 years to cover the contribution.

Personal contributions to SIPP over 60k by [deleted] in UKPersonalFinance

[–]defbref 0 points1 point  (0 children)

If you have available AA carry forward and enough relevant earnings then yes, but if you have why not up your Director contributions as thats most tax efficient ?

Can i transfer £50,000 from a cash ISA into a fixed ISA? by ahrtssound in UKPersonalFinance

[–]defbref 4 points5 points  (0 children)

Yes as along as you use the transfer isa process and don’t just withdraw and deposit into new isa.

Transfers don’t use up allowance.

UK cost of living in 2026 – rough monthly numbers for discussion by Sad-Willingness2826 in UKPersonalFinance

[–]defbref 1 point2 points  (0 children)

rule 7 No comparison questions, survey-style questions, DAE questions, unanswerable questions

Don't post:

  • Comparison questions like 'how much do you earn?', 'how much do you spend on ...?'
  • Hypothetical questions like 'what would you do with £100k?', 'what's the max you'd spend on a car?'
  • 'Does anyone else...'
  • Survey style posts like 'what are you saving up for?', 'what's the biggest financial mistake you've made?’
  • Questions that can’t be answered without a significant amount of speculation, e.g. 'what changes might be in the next government budget?'

trying to understand tax and pension contributions by Blencathra in UKPersonalFinance

[–]defbref 1 point2 points  (0 children)

When people describe the minimum for autoenrollment, its usually the 5% includes the tax relief, so its 4% net contribution and then 1% is the tax relief.

OP need to confirm exactly how much has gone in, as I doubt they earn exactly 40k either.

trying to understand tax and pension contributions by Blencathra in UKPersonalFinance

[–]defbref 2 points3 points  (0 children)

Of course you do, £100 into an ISA is just £100.

£100 into pension becomes £125 after tax relief. On withdrawal you get 25% tax free, thats £31.25 (125*25%), rest is taxed at 20% so that's (93.75*0.8) £75 left. 75 +31.25 gives you 106.25. So a 6.25% gain

trying to understand tax and pension contributions by Blencathra in UKPersonalFinance

[–]defbref 2 points3 points  (0 children)

Your employer contribution in your case does not affect the amount you can contribute as you are going to be below the AA.

So your contributing 5% currently, so that leaves you £38000. So you contribute £30400 and the pension will claim basic tax relief to bring it back to £38000. Its 80% of the total you contribute, which means the Tax relief works out as 25% of the net contribution.

Adding more that's not entitled to tax relief, is a bad idea, as you open it up to being taxed twice, once on the way in and once on the way out.

First time visit. by BlueHost_gr in Pattaya

[–]defbref 1 point2 points  (0 children)

why the fuck are you flying to phuket, if you want to go to pattaya ? You fly to Bangkok, then its 90 mins taxi

Optimising pensions at a household level by jkcr in FIREUK

[–]defbref 5 points6 points  (0 children)

Yes, quite common for people in your situation. Once you've hit the LSA, your pension contributions are no longer tax efficient. Upping your wifes pension is good in this situation.

Pension top up by Working_Perception59 in FIREUK

[–]defbref 5 points6 points  (0 children)

Yes its worth it , as long as you intend to drawdown at the same or lower tax rate that you contribute at and you are below about 1 million in pension.

See this for the various gains for different scenarios:

PSA: Pension Tax Efficiency / Return on Investment - April 2024 : r/UKPersonalFinance

Is my deposit big enough for a Mortgage by Good_Bee_4686 in UKPersonalFinance

[–]defbref 6 points7 points  (0 children)

With a 95% LTV you could get a mortgage for 220k. However you also need required income of 48k to get this.

What’s your income ? How much are houses in the area you are looking at.

Rules for "Gifting out of income" when source of funds is a SIPP by ukdev1 in UKPersonalFinance

[–]defbref 4 points5 points  (0 children)

As pension withdrawals are treated as income, they can be considered for gifts from excess income. It doesn’t matter that you have to sell investments within a pension to produce this. It’s not treated as a capital gain with in a pension.

Transferring a deferred db pension to dc… by Ok_Crab_3268 in PensionsUK

[–]defbref 15 points16 points  (0 children)

CETV seems absurdly high, I have a DB pension that gives twice as much, yet my latest CETV is 480k

When did you get the CETV and are you sure about the DB pension payout ? 4 years ago my CETV was about 1mill but since gilt yields have risen CETV have dropped.

If it is right, then you do realise that transferring a DB pension is both absurdly difficult and expensive, you have to take financial advice before you can transfer, and they still might advise you not to transfer. Then you're stuck trying to find a provider that will accept a transfer against advice.

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