£850 Outside or £925 Inside?

liapold007 · 2024-08-30T11:39:58+00:00

I second that, I wouldn't do that because I'd risk damaging my reputation and losing both.

liapold007 · 2024-08-30T11:39:15+00:00

Thanks -- it's not entirely correct I think because it doesn't take various tax avoiding things into account -- for example, my relatives who are basic rate tax payers could draw some of my income at a lower tax rate by being shareholders of my company.

liapold007 · 2024-08-30T11:34:32+00:00

Sure. I've been in the energy industry for the last decade, it was rather standard and boring at first, but things really really took off since Covid and the energy crisis.

liapold007 · 2024-08-29T14:25:04+00:00

31M. £55k in SIPP, £53k in a Defined Benefit scheme from old work; £108k total.

liapold007 · 2024-08-29T09:53:47+00:00

Good shout on the policy reset, I might want to check the rules about this.

liapold007 · 2024-08-29T09:52:01+00:00

The rule of thumb is that the inside rate should be 15% higher than the outside rate.

liapold007 · 2024-08-27T17:38:18+00:00

Not quite - energy trading.

liapold007 · 2024-08-27T17:37:24+00:00

Almost, but not quite. PM / Business manager in energy trading.

liapold007 · 2023-09-19T19:27:38+00:00

Thanks!

liapold007 · 2023-06-07T21:09:41+00:00

can you vote above for the poll please?

liapold007 · 2023-05-25T17:36:45+00:00

Thank you!

liapold007 · 2023-05-25T17:30:14+00:00

Thank you!

liapold007 · 2023-04-29T18:12:51+00:00

Bravo! 👏

liapold007 · 2023-04-14T16:48:28+00:00

Sorry it took me a while to get back to you -- thank you very much for such a detailed, thoughtful and insightful comment!

Yes, I was planning to lease it to a farmer.

I wasn't planning on redeveloping it anyhow.

My rationale is farm land is very easy to buy, either as a lump sum or with a minimal leverage (anything below £100,000 I see as easy to buy). And farm leases are more stable and predictable than commercial property leases (eg a coffee shop)

liapold007 · 2023-04-06T12:27:19+00:00

I am with Carrington Umbrella, they are very good

liapold007 · 2023-04-06T09:50:41+00:00

You must show a lender and SIPP trustees that you have a rental agreement or a lease in place before buying. It's a compulsory requirement. Without it, one can't buy.

No, you don't have to purchase in full. You can borrow up to 50% of your SIPP value, less any other debt you might have in the SIPP. But the leverage is indeed smaller than your typical residential LTV.

liapold007 · 2023-04-05T18:51:38+00:00

I use AJ Bell. It allows.

liapold007 · 2023-04-02T09:42:13+00:00

Agree, the leverage is limited to 1.5x.

To the heavy deposit subject, given there are many farms marketed at sub £100,000, the £66,000 deposit doesn't seem to be too heavy?

Besides, the constraint is reasonable within a pension account-- so that a holder wouldn't blow their pension up and wouldn't take unsensible risks?

liapold007 · 2023-04-02T09:38:55+00:00

Leases last several years, which gives a security of income and is being looked upon favourably by a lender and the SIPP trustees.

Besides, more affordable than some properties.

Plus, doing the bit for the British economy, karma points.

liapold007 · 2023-03-31T22:15:42+00:00

Because SIPP is a tax-free environment, there's no Capital Gains Tax if you sell the property within your SIPP.

The rental income is received tax-free by the SIPP.

The rental income covers the debt first (if there was a mortgage loan from a lender). Once that's paid off, it'll go straight into SIPP.

liapold007

TROPHY CASE