Why the California is a third of the price for pensioners

[T6 CFO]

Doh! So next time I suggest to my mum that she pay the £6 price of our two lattes and shared chocolate muffin at Costa on the basis that the cost to her estate is £3.60 and the cost to me in labour is £10, I am doing something other than offering sound financial advice?





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Yep your justifying in your own mind making your poor old Mum pay for your indulgence.



Mike

 

[motacyclist]

Yep your justifying in your own mind making your poor old Mum pay for your indulgence.



Mike

And Mum also needs £10 income to leave £6 net. Unless she's the Queen and doesn't pay income tax

 

[18hunts]

I think I recall, and being a pensioner these days it's more reminiscing, that a while age somebody started a poll on what is the average age of a Cali owner. If I recall correctly the average age was something like 44 years old which means, statistics being what they are, there has to be a lot of owners younger than this to drag the average age down from that of a pensioner.
I'm still trying to get my mind around 2 lattes and a chocolate muffin for £6, being a pensioner I can't afford such luxuries.

 

[T6 CFO]

I think I recall, and being a pensioner these days it's more reminiscing, that a while age somebody started a poll on what is the average age of a Cali owner. If I recall correctly the average age was something like 44 years old which means, statistics being what they are, there has to be a lot of owners younger than this to drag the average age down from that of a pensioner.
I'm still trying to get my mind around 2 lattes and a chocolate muffin for £6, being a pensioner I can't afford such luxuries.

Get Tom to buy you one. His Mum buys his.


Mike

 

[andyinluton]

I'm still trying to get my mind around 2 lattes and a chocolate muffin for £6, being a pensioner I can't afford such luxuries.

So am I - I'm based in Covent Garden at the moment and compared to what we pay thats an absolute bargain!

 

[Borris]

Doh! So next time I suggest to my mum that she pay the £6 price of our two lattes and shared chocolate muffin at Costa on the basis that the cost to her estate is £3.60 and the cost to me in labour is £10, I am doing something other than offering sound financial advice?
Well you could just be wriggling out of paying!





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[bigmac77]

Someone’s got to pay for the kids iPhones and Sky subscriptions for those poor souls on benefits!

I know of someone with a “disability” who gets a total of £2500 monthly benefits, has full Sky, latest Samsung top line smartphone, three horses and appears to have no apparent disability when she jogs alongside them in the ring!

She could suffer with depression.

 

[MarkVw2017]

Just to confirm, you 'only' need to earn £90k to be able to buy a cali for £60k, not £100k

 

[MarkVw2017]

In my ignorance, i had to google what the hell is inheritance tax threshold!! Seriously, 40% tax anything over £325k. Wow, why isnt their protests in the streets! I pay so much tax now and they want more when im dead. Ok, Vegas it is then when i retire! Hinestly didnt know it was introduced to re distribute to the not so welathy. Sure paying taxes all your life is enough, isnt it??? And i wouldnt put £325k in the ''very rich' category

 

[Elmo3]

Just to confirm, you 'only' need to earn £90k to be able to buy a cali for £60k, not £100k
View attachment 36517

This assumes, of course, that you don’t buy anything else at all in that tax year, not even food. Chances are, if you can buy a Cali after paying for everything else, the funds will come fully from 40 / 45% taxed income plus NI.

 

[T6 CFO]

In my ignorance, i had to google what the hell is inheritance tax threshold!! Seriously, 40% tax anything over £325k. Wow, why isnt their protests in the streets! I pay so much tax now and they want more when im dead. Ok, Vegas it is then when i retire! Hinestly didnt know it was introduced to re distribute to the not so welathy. Sure paying taxes all your life is enough, isnt it??? And i wouldnt put £325k in the ''very rich' category
View attachment 36518

From Gov.uk

“Passing on a home

You can pass a home to your husband, wife or civil partner when you die. There’s no Inheritance Tax to pay if you do this.

If you leave the home to another person in your will, it counts towards the value of the estate.

If you leave your home to your children (including adopted, foster or stepchildren) or grandchildren, your tax-free threshold will increase to £450,000.”




Mike

 

[Amarillo]

In my ignorance, i had to google what the hell is inheritance tax threshold!! Seriously, 40% tax anything over £325k. Wow, why isnt their protests in the streets! I pay so much tax now and they want more when im dead. Ok, Vegas it is then when i retire! Hinestly didnt know it was introduced to re distribute to the not so welathy. Sure paying taxes all your life is enough, isnt it??? And i wouldnt put £325k in the ''very rich' category

Inheriting £650,000 in cash or £900,000 in property seems quite a fortune to me. But perhaps a better way to tax would be to set a limit on how much people can be bequeathed tax free, and not on how much people can bequeath tax free.

 

[MarkVw2017]

From Gov.uk

“Passing on a home

You can pass a home to your husband, wife or civil partner when you die. There’s no Inheritance Tax to pay if you do this.

If you leave the home to another person in your will, it counts towards the value of the estate.

If you leave your home to your children (including adopted, foster or stepchildren) or grandchildren, your tax-free threshold will increase to £450,000.”




Mike

Cheers Mike,

So if someone earned a £1000,0000, thet would pay £460k taxes, and take home £540k , and then the poor person passed away the day after and gave all thr money to kids, the government wouod take a further £86k tax (£540-£325k x 40%) to distribute to the 'less wealthy'. Not right that at all!

Sorry, know this is but this thread has opened my eyes!!!

 

[MarkVw2017]

Cheers Mike,

So if someone earned a £1000,0000, thet would pay £460k taxes, and take home £540k , and then the poor person passed away the day after and gave all thr money to kids, the government wouod take a further £86k tax (£540-£325k x 40%) to distribute to the 'less wealthy'. Not right that at all!

Sorry, know this is but this thread has opened my eyes!!!

Sorry,to many '0'', supposed to be a million

 

[MarkVw2017]

Inheriting £650,000 in cash or £900,000 in property seems quite a fortune to me. But perhaps a better way to tax would be to set a limit on how much people can be bequeathed tax free, and not on how much people can bequeath tax free.

Arrrh, i see!

 

[bvddobb]

We have instructed our kids to NOT accept the inheritance when we die... So they don't run the risk of having to pay any IHT or settle any debts and we need not worry about a thing, taxes the least, and can spend everything we have earned during our life!
On the contrary, we intend to go with at least 6 M in debts!!

 

[motacyclist]

She could suffer with depression.

On the contrary, she's extremely happy; as would anyone be who's hardly ever gone out to work!

 

[motacyclist]

Just to confirm, you 'only' need to earn £90k to be able to buy a cali for £60k, not £100k
View attachment 36517

The pensioner does have an advantage insofar as no NI is payable after retirement age.

 

[soulstyledevon]

Cheers Mike,

So if someone earned a £1000,0000, thet would pay £460k taxes, and take home £540k , and then the poor person passed away the day after and gave all thr money to kids, the government wouod take a further £86k tax (£540-£325k x 40%) to distribute to the 'less wealthy'. Not right that at all!

Sorry, know this is but this thread has opened my eyes!!!

We thought it was a lot more to.
Yesterday we started to look at what happens if we both died and what would be left for our only son.
We are planning to ensure he has financial security once we are gone and how we provide for his costs growing up so we don’t burden other people with it.

£450k isn’t a lot in our town. In fact our house would probably be worth double that. It’s bad enough that worse case we both aren’t around, but to slap 40% on our family home which we have worked hard for, is mildly annoying.

It’s been an eye opener for us too and has just brought around more questions and obstacles for us to sort...

 

[MarkVw2017]

We have instructed our kids to NOT accept the inheritance when we die... So they don't run the risk of having to pay any IHT or settle any debts and we need not worry about a thing, taxes the least, and can spend everything we have earned during our life!
On the contrary, we intend to go with at least 6 M in debts!!

Yes, get a cali in every colour on finance ;-)

 

[Amarillo]

We thought it was a lot more to.
Yesterday we started to look at what happens if we both died and what would be left for our only son.
We are planning to ensure he has financial security once we are gone and how we provide for his costs growing up so we don’t burden other people with it.

£450k isn’t a lot in our town. In fact our house would probably be worth double that. It’s bad enough that worse case we both aren’t around, but to slap 40% on our family home which we have worked hard for, is mildly annoying.

It’s been an eye opener for us too and has just brought around more questions and obstacles for us to sort...

The IHT threshold for a family home is £900,000 between a couple, rising to a cool £1 million by April 2020.


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[Borris]

I believe it's still possible to put your house into a trust for your offspring and carry on living in it. I might be talking total rubbish here but unless things have changed, providing you both continue to live for another seven years after setting up the trust, the HMRC can't include the property when calculating the IHT liabilty. However, I'm also pretty sure you would need to be mortgage free to do this.

The other big advantage of doing this is that if you ever needed to go into a Nursing home the property wouldn't legally be yours so the Local Authority couldn't insist you use the equity to pay your fees. With some exceptions, as things stand, the Local Authority will not contribute to your Nursing Home fees until your estate has reduced to £23250. Even then they are unlikely to do it without a struggle. Until that point is reached you will foot the bill which can be at the very least £3-4k per month.

I do have some personal experience of this issue but as I've said things may have changed since then including the fees! Worth asking a Legal Beagle if it's possible.

The only thing is that you will need to be sure that your kids won't decide to turf you both out on the street at some later date.

In any event, by the time that you've reached the Nursing Home stage it"s far better to have squandered all your wealth on fags, booze, women and serious hedonism. If you don't you'll probably want to strangle the guy in the next bed who's done that all of his life and isn't paying a penny to be there!

 

[soulstyledevon]

We have read some stuff online. What’s accurate, who knows.
Its a few years until the house gets signed over. I’m 39, so hopefully got a bit of life left in me

 

[Amarillo]

Clare took her dad to see a nursing home in Blackheath. £1500 per week ~£6,500 per month. £3-4,000 is _very_ optimistic.


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[Borris]

Clare took her dad to see a nursing home in Blackheath. £1500 per week ~£6,500 per month. £3-4,000 is _very_ optimistic.


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Well as I said "things may have changed since then" and they obviously have. That was only three years ago!!! Whilst the costs involved in running these homes are always increasing, I'd be astounded if many nursing homes weren't engaged in excessive profiteering knowing full well that the users don't really have much choice but to pay up. Once the user is installed the owners know that they have often tapped into a rich vain of available equity. I also suspect that those that pay thier own fees are subsidising those that don't.

The same can be said about the rising cost of funerals. Everyone will need one eventually. All those involved seem to be increasing thier costs regularly at way way above the rate of inflation. Why? Because it's a nice little earner! Everyone from local councils, companies operating crematoriums, church authorities, funeral directors etc etc, they are all at it. My advice is don't die.

When the time comes, save costs and use your cali. Of course the kitchen won't be of any use to you then so best stretch out in the back of a roomy multi purpose Beach.

On that cheerly note it's time to pack the van for a two day camping trip with three of our younger grandchildren.