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CMS and notional income
- Thread starter NewcastleBrownAle
- Start date
I have a huge NHS pension and the 150k is the maximum tax free lump sum, if I choose to take that option, with a slightly reduced pension. I have paid 12.5 % of my earnings into it, for almost 40 years, so yes it seems big, but these are within the pension rules.Question, how are you getting 150 lump sum tax free? Reason I'm asking my works pension state anything 30k or under is tax free and taxed on amount above that
I'm also sure that based on 150k only the first 25% is tax free,75% is then taxed accordingly. Correct me if I'm wrong.
Yeah 25% under current rules is tax free up to the lifetime annual allowance which is approx 1 millionI have a huge NHS pension and the 150k is the maximum tax free lump sum, if I choose to take that option, with a slightly reduced pension. I have paid 12.5 % of my earnings into it, for almost 40 years, so yes it seems big, but these are within the pension rules.
I think the lifetime allowance is abolished come April
Hello, I’m currently 5 months in to an investigated by the FIU , have recently sold my house & downsized and moved the excess money into a new limited company buying several properties. I’m worried the excess money that I used to buy the properties will be charged at 8% . What are People’s thoughts on this has anyone had a similar scenario?
I suppose the question is would the FIU / CMS see the company as no different to you owning the properties directly. Which I'm guessing they may do if you own the company 100%
The article upthread mentions assets used in a trade as exempt, the link to the legislation. Wonder if that might cover it?
The article upthread mentions assets used in a trade as exempt, the link to the legislation. Wonder if that might cover it?
A few thoughts here:Hello, I’m currently 5 months in to an investigated by the FIU , have recently sold my house & downsized and moved the excess money into a new limited company buying several properties. I’m worried the excess money that I used to buy the properties will be charged at 8% . What are People’s thoughts on this has anyone had a similar scenario?
1. The money you moved into the LTD is a loan to your business. I'm not aware of anything in the legislation that counts loans as assets for notional income.
2. The properties are owned by the business, not by you. The business is a separate legal entity to you, and there have been case precedents that say as much.
3. Their argument could be that you have diverted the assets for the purpose of avoiding CMS. However, your counter argument is that this is done as a business decision; I'm also not sure if there is anything on diversion of assets in the same way as there is for diversion of income.
Given the amount of money (and stress), it would be worth professional advice from a solicitor who specialises in CMS. I'd be interested to know the professional opinion on this.
Thanks for the replies to both of you, It was purely done on a business decision because only now have i realised the potential mistake . The house downsize was completed in December, if I’d of known this at the time I would’ve probably sat tight .A few thoughts here:
1. The money you moved into the LTD is a loan to your business. I'm not aware of anything in the legislation that counts loans as assets for notional income.
2. The properties are owned by the business, not by you. The business is a separate legal entity to you, and there have been case precedents that say as much.
3. Their argument could be that you have diverted the assets for the purpose of avoiding CMS. However, your counter argument is that this is done as a business decision; I'm also not sure if there is anything on diversion of assets in the same way as there is for diversion of income.
Given the amount of money (and stress), it would be worth professional advice from a solicitor who specialises in CMS. I'd be interested to know the professional opinion on this.
Yes, agreed definitely need some legal advice if the FUI report goes against me .