Mortgage on home query
Discussion
No mortgage or credit in last 25 years, semi-retired with 900k home, investing in standalone businesses / investments and wondering if feasible to 'leverage' the home, by extracting cash via a mortgage for say 500k ?
No 'formal' income, high NW but invested, no employment records for c20 years, etc.
Thoughts ? Is my 'tax efficient invisible profile' simply blocking me from wandering along to local branch of my bank, and asking for a 15-20 year repayment loan, or interest only loan (potential IHT advantage...) ?
An IFA could probably construe a Dividend Income of 60-90k / year....but portfolio and dividend can be changed easily.
BA
No 'formal' income, high NW but invested, no employment records for c20 years, etc.
Thoughts ? Is my 'tax efficient invisible profile' simply blocking me from wandering along to local branch of my bank, and asking for a 15-20 year repayment loan, or interest only loan (potential IHT advantage...) ?
An IFA could probably construe a Dividend Income of 60-90k / year....but portfolio and dividend can be changed easily.
BA
I tackle tax as 'large undesirable expense', morally comfortable the unavoidable taxes (eg Stamp Duty and VAT) probably equate to some 150-200k / year.
But Personal and Corporate, CGT, hopefully IHT....are manageable.
By living off savings, no Income, so Personal Tax is near zero.
By reinvesting and growing or diversifying businesses constantly, little or no Corporate Tax has been due.
Tactical pre-EOFY reviews in Q3/4 enable avoidance steps to be taken.
Only works of course if business is growing, assets being Gifted systematically, and ad-hoc losses swallowed, allowing me to move forwards on profitable enterprises.
Has worked for 20+ years, but renders me useless for leasing, mortgages, etc....
Will seek out Sarnie.
BA
But Personal and Corporate, CGT, hopefully IHT....are manageable.
By living off savings, no Income, so Personal Tax is near zero.
By reinvesting and growing or diversifying businesses constantly, little or no Corporate Tax has been due.
Tactical pre-EOFY reviews in Q3/4 enable avoidance steps to be taken.
Only works of course if business is growing, assets being Gifted systematically, and ad-hoc losses swallowed, allowing me to move forwards on profitable enterprises.
Has worked for 20+ years, but renders me useless for leasing, mortgages, etc....
Will seek out Sarnie.
BA
Hi Jockman. Probably / possibly....typically I've tried to steer clear of Trusts, EIS, ISAs, Pensions....although carry old historic pension pots / SIPPs but not contributed for long long time. Was offshore a long time, so NW built up without ISAs, etc, so now contributions and growth would be at meaningless levels.
With investments and startup businesses, hard enough focusing on getting this launched into profits, without trying to think about further 'wrapper' issues. But I may be wrong.
So far, has worked well for me. I could imagine if all 'engines' fired perfectly one year, and we couldn't diversify effectively intra-year, I'd be caught in perfect storm of Gains....and tax would be unavoidable, but so far, OK.
Let's see. Thanks.
With investments and startup businesses, hard enough focusing on getting this launched into profits, without trying to think about further 'wrapper' issues. But I may be wrong.
So far, has worked well for me. I could imagine if all 'engines' fired perfectly one year, and we couldn't diversify effectively intra-year, I'd be caught in perfect storm of Gains....and tax would be unavoidable, but so far, OK.
Let's see. Thanks.
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