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Buying Gold

colinb said:
You are mixed up. My statements are 100%accurate and checked by an IFD.
The last budget, once passed into law, means that anything left in a SIPP can first be liable to Inheritance tax and secondly taxed again as income at the recipients highest Income Tax rate. Depending on the type of Drawdown taken, there can be some limit or none on what you take out, but it is always taxed as income.
So £1000 left might first lose £400 to IHT, leaving 600. Then that might be taxed again at 40% income tax, leaving 360. A tax rate of 64% overall.
A company pension scheme is totally different. That normally dies with you, in whole or part.
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You used to have to buy a Pension at 75....there are other options. So before your 75th birthday you move the pension pot. The alternative allows you to leave the pot tax free.
 
This is on the Wingate site....google it
The major argument for taking the tax-free element is that lump sum death benefits (normally the fund value) from a pension are ordinarily tax free under 75 (ignoring the lifetime allowance), but there is the risk of tax beyond the age of 75. As long as existing pension contracts allow a pension fund can now be passed down to any recipient (or recipients) free of inheritance tax and other taxes as it is transferred – this is a valuable benefit. A pension fund passed down where the holder is over 75 would be taxed on the recipient as income as they drawdown, but with good planning these taxes will seldom be more than 20%, and could be as low as 0%. So whilst this could be inferior to the tax-free lump sum that could have been withdrawn immediately prior to death, that same lump sum might be hit by inheritance tax, and consideration needs to be given to this tax differential.

This is not to say that an individual will never take their tax free lump sum, but to assume it will always be taken at 75 is a gross oversimplification and will be to many people’s detriment.
 
Hello, My Sons 50 this year ( Old Me ha ha ) thinking to buy him some Gold, Coins or a Bar, ???? I would think a new set of Coins from 1975 might work, Where is a good Co to check??
 
Ratman72 said:
Hello, My Sons 50 this year ( Old Me ha ha ) thinking to buy him some Gold, Coins or a Bar, ???? I would think a new set of Coins from 1975 might work, Where is a good Co to check??
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That's a lovely gesture ☺️.
If its purely from an investment angle then just fine bullion 24 carat is best bet...as if comes to selling it on then they won't pay any extra for 1975 coins.
 
Ratman72 said:
Hello, Thanks will bear that in mind,
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Coins. Sovereigns are tax free in all respects as regards gains. Bullion bars accumulate capital gains tax and there is no taper relief as that was stopped years ago.
 
Ratman72 said:
Hello, Thanks for that, I was thinking of a 1973 Gold coin set
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In your thinking, separate rare coins (numismatics?) and collectables from Investments. Sets and rarities carry a premium that you may not get back in the future. Rarity/beauty value may go either way- a gain or a loss.
For my children, several years ago I bought a number of older sovereigns for each of them, with no collectable value. They are worth simply the gold value. But although that may or not keep place with inflation, they are easily sold and carry no taxes.
Several companies specialise in this, and offer multiples of 5,10, 25 etc.
In all cases there will be a buy/sell spread, but life was ever thus.
 
colinb said:
In your thinking, separate rare coins (numismatics?) and collectables from Investments. Sets and rarities carry a premium that you may not get back in the future. Rarity/beauty value may go either way- a gain or a loss.
For my children, several years ago I bought a number of older sovereigns for each of them, with no collectable value. They are worth simply the gold value. But although that may or not keep place with inflation, they are easily sold and carry no taxes.
Several companies specialise in this, and offer multiples of 5,10, 25 etc.
In all cases there will be a buy/sell spread, but life was ever thus.
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Well said & all correct 👏👏.
 
karl66 said:
Any mixed date 1oz coins are perfectly fine for investments & easy to sell if required....Krugarands or maples would be a good start.
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The advantage of sovereigns is that they are british legal tender and free of CG tax. I don't know if that applies to Krugerrands and Maples in this country. I also don't know what the situation of sovereigns is with inheritance tax. Are they worth £1 or £400ish? Gold (Bullion) has to be declared, but coins are not bullion.
Could you "sell" them to your children for £1.00? There is nothing in contract law to prevent you from making a bad bargain.
Any Legal Eagles out there who can shed some light on this?
 
colinb said:
The advantage of sovereigns is that they are british legal tender and free of CG tax. I don't know if that applies to Krugerrands and Maples in this country. I also don't know what the situation of sovereigns is with inheritance tax. Are they worth £1 or £400ish? Gold (Bullion) has to be declared, but coins are not bullion.
Could you "sell" them to your children for £1.00? There is nothing in contract law to prevent you from making a bad bargain.
Any Legal Eagles out there who can shed some light on this?
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No, only UK coins are exempt from CGT as they are legal tender in the UK, hence apart from a single maple I've always bought Britannias.
 
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