How do you spend £143 Million?

[FN2TypeR]

What sort of taxation would be levied on interest like that if you left it in a UK bank, out of interest?

[Tuvra]

The Mad Monk said:

How do you arrive at that calculation?

£143 million @ say, 2% p.a. = £7,835.61 per day.

Absolutely mental

£60k a week just off Interest, unbelievable . I can't imagine having £60k a week clearing into my bank let alone having the £143m to fall back on.

[Adam B]

FN2TypeR said:

What sort of taxation would be levied on interest like that if you left it in a UK bank, out of interest?

interest is taxed as income, so most of it would be subject to 45% tax and 2% NI

[Tuvra]

Adam B said:

interest is taxed as income, so most of it would be subject to 45% tax and 2% NI

Am I the only one that finds this wrong?

[krallicious]

Tuvra said:

Am I the only one that finds this wrong?

Nope. I'd purchasing my residence in Monaco if I had enough money in the bank to be earning that amount of interest.

[Adam B]

Tuvra said:

Am I the only one that finds this wrong?

Depends on your views on progressive v regressive tax systems, I think those who earn more should pay more, and those who earn millions in UK and want to move it all to offshore/Monaco should be subject to a huge punitive penalty.

Me, I think a lottery winner making £6k a day of interest is a great example of the correctness of a progressive tax system.
I pay the 47% rate - it stings but I agree with it, I would rather a return to 40% and I don't agree with IHT or the removal of PA if you earn over £100k, but in principle the system is fair.

But going way OT

Edited by Adam B on Wednesday 21st September 10:47

[Tuvra]

Adam B said:

Trump is on your side

Me, I think a lottery winner making £6k a day of interest is a great example of the correctness of a progressive tax system.
I pay the 47% rate - it stings but I agree with it, I would rather a return to 40% and I don't agree with IHT or the removal of PA if you earn over £100k, but in principle the system is fair.

But going way OT

Out of interest (see what I did there?), what about someone who has earned £143m and paid taxes all their life while amassing that fortune?

Just say someone builds a company from nothing and sells out for £143m for example?

Not arguing whats right or wrong by the way, just curious

[irocfan]

Shakermaker said:

Anyway, why was this 2 year old thread bumped?

one might imagine because of the £ increase?

[Sheepshanks]

Tuvra said:

Adam B said:

interest is taxed as income, so most of it would be subject to 45% tax and 2% NI

Am I the only one that finds this wrong?

It is wrong. There's no NI on unearned income.

[SlackBladder]

The Mad Monk said:

SlackBladder said:

Same here, discussing this with the other half last night (she's from the Philippines originally too). Difficult to get your head round the fact that the interest you'd earn on your interest would be over £1000 a day.

How do you arrive at that calculation?

£143 million @ say, 2% p.a. = £7,835.61 per day.

Wow, well done for quoting me on something I posted nearly 2 years ago. If you go back to my original quote I was responding to someone else who said you'd earn £7.5m a year interest on £145m or nearly 5%, based on that rate 5% of 7.5m is £375,000 or just over £1000 a day.

That's how I arrived at that calculation

[Terminator X]

Adam B said:

Tuvra said:

Am I the only one that finds this wrong?

Depends on your views on progressive v regressive tax systems, I think those who earn more should pay more, and those who earn millions in UK and want to move it all to offshore/Monaco should be subject to a huge punitive penalty.

Me, I think a lottery winner making £6k a day of interest is a great example of the correctness of a progressive tax system.
I pay the 47% rate - it stings but I agree with it, I would rather a return to 40% and I don't agree with IHT or the removal of PA if you earn over £100k, but in principle the system is fair.

But going way OT

Edited by Adam B on Wednesday 21st September 10:47

I'm sure most agree they should pay more £'s however paying a higher %age irks a bit with me and tbf is why you see very wealthy people moving their money off-shore. If the %age was less I doubt they would bother. Capiche!

TX.

[epom]

I'd spend it in as much fun a way as I could. I certainly would not be worrying about annual income or % rates.
I'd go daft, in a good way.

[Adam B]

Tuvra said:

Out of interest (see what I did there?), what about someone who has earned £143m and paid taxes all their life while amassing that fortune?

Just say someone builds a company from nothing and sells out for £143m for example?

Not arguing whats right or wrong by the way, just curious

Certainly a much more deserving case than a lottery winner but principle is the same

Anyone in the situation you describe would have employed an accountant and would have taken advantage of the legal tax loopholes (most of which I approve of as they encourage investment/entrepreneurs) so would have paid far less than 47%. And if he sells the company and reinvests in other businesses again there are tax reductions.

But ultimately he built a lot of personal wealth due partly to a UK education system, UK health system protected by a UK legal, police and defense force etc etc

Ultimately if the wealthy don't pay more, the poor would have too pay 5-10% more tax

[Adam B]

Sheepshanks said:

It is wrong. There's no NI on unearned income.

Aha good point, my fault for multi tasking at work

anyway we are derailing thread into debate about UK tax system, back to blowing £143M on C&H please

[Rosscow]

Pwig said:

And that's £52k a year if you don't account for inflation.

in 20 years that could be half that in real terms

Exactly.

I'm guessing that say back in 1990, an income of £25,000 would be around £40,000 in today's money.

Take that £52,000 today and fast forward 25 years and you're probably looking at a very, very average wage (albeit tax free).

Of course we could all live on £3.6m for the rest of our lives - but I don't think you'd live how you'd like to live considering you'd won the lottery.

[Shakermaker]

How would I spend £143m?

ring ring, ring ring..
"Hello"
"Hi, is that the League of Supercar Manufacturers Top Secret Underground Bunker Base That Looks Like the Room with the Big Round Table In Dr Strangelove?"
"Yes, who's this?"
"It's Alex, could you send me one of each please?"
"OK, they'll be with you tomorrow!"
"Cheers!"

Then

ring ring, ring ring.
"Hello?"
"Hi, is that Kevin McCloud?"
"Yes, who's this?"
"It's Alex. Could you build me an awesome house or two please, with enough garage space for all those supercars I just ordered?"
"Sure thing mate, no worries!"
"Cheers!"

then

Ring ring, ring ring
"Hello?"
"Hi, is that Jennifer Lawrence, Taylor Swift and many other attractive females who are admired around the world?"
"Yes, who's this?"
"It's Alex. My wife has just left me because despite the fact I'm now super wealthy, I've just blown most of the money on cars and awesome houses and forgot to get something to replace her old Corsa, so I need some company. Want to come over to my awesome houses and party?"
"Sure! We'll be there tomorrow"
"Cheers!"

[williamp]

Tuvra said:

The Mad Monk said:

How do you arrive at that calculation?

£143 million @ say, 2% p.a. = £7,835.61 per day.

Absolutely mental

£60k a week just off Interest, unbelievable . I can't imagine having £60k a week clearing into my bank let alone having the £143m to fall back on.

isnt it just. You would very quickly get to a stage where you couldnt spend more in a week then you earned in interest. And any you dont spend gives you more in interest...

[irocfan]

the question is where would you actually keep said funds seeing as the financial compensation scheme runs at covering £75k?

[croyde]

Shakermaker said:

How would I spend £143m?

ring ring, ring ring..
"Hello"
"Hi, is that the League of Supercar Manufacturers Top Secret Underground Bunker Base That Looks Like the Room with the Big Round Table In Dr Strangelove?"
"Yes, who's this?"
"It's Alex, could you send me one of each please?"
"OK, they'll be with you tomorrow!"
"Cheers!"

Then

ring ring, ring ring.
"Hello?"
"Hi, is that Kevin McCloud?"
"Yes, who's this?"
"It's Alex. Could you build me an awesome house or two please, with enough garage space for all those supercars I just ordered?"
"Sure thing mate, no worries!"
"Cheers!"

then

Ring ring, ring ring
"Hello?"
"Hi, is that Jennifer Lawrence, Taylor Swift and many other attractive females who are admired around the world?"
"Yes, who's this?"
"It's Alex. My wife has just left me because despite the fact I'm now super wealthy, I've just blown most of the money on cars and awesome houses and forgot to get something to replace her old Corsa, so I need some company. Want to come over to my awesome houses and party?"
"Sure! We'll be there tomorrow"
"Cheers!"

Kevin McCloud Actually a good idea.

Jennifer Lawrence An even better idea.

[irocfan]

croyde said:

Kevin McCloud Actually a good idea.

Jennifer Lawrence An even better idea.

well if your tastes run to her I understand that Jolie is now free