720s Below 200K Already
Discussion
ThelastNA said:
Buster73 said:
A lot of folk buying are just reducing their potential inheritance tax liability.
In effect getting tax relief on the depreciation.
It’s not all bad .
Hmm, I'm sure cars are part of your estate so the IHT liability will still be there?In effect getting tax relief on the depreciation.
It’s not all bad .
For example:
If someone has an estate large enough that £250k of cash in a bank account would be fully subject to IHT and passes away then the taxman would get £100k of it.
However, if that person instead decides to buy a 720s instead which depreciates £100k by the time they pass away then the only the residual value of the car is taken into account (£150k) so £60k goes to the taxman.
£100k was lost but only £60k was paid by the owner who benefited from the car. £40k was subsidised by the taxman.
ralphrj said:
But as the car is depreciating it will be worth less and therefore less IHT will be due.
For example:
If someone has an estate large enough that £250k of cash in a bank account would be fully subject to IHT and passes away then the taxman would get £100k of it.
However, if that person instead decides to buy a 720s instead which depreciates £100k by the time they pass away then the only the residual value of the car is taken into account (£150k) so £60k goes to the taxman.
£100k was lost but only £60k was paid by the owner who benefited from the car. £40k was subsidised by the taxman.
Well if you use that kind of rationale for planning your old age then I wish you good luck For example:
If someone has an estate large enough that £250k of cash in a bank account would be fully subject to IHT and passes away then the taxman would get £100k of it.
However, if that person instead decides to buy a 720s instead which depreciates £100k by the time they pass away then the only the residual value of the car is taken into account (£150k) so £60k goes to the taxman.
£100k was lost but only £60k was paid by the owner who benefited from the car. £40k was subsidised by the taxman.
ralphrj said:
But as the car is depreciating it will be worth less and therefore less IHT will be due.
For example:
If someone has an estate large enough that £250k of cash in a bank account would be fully subject to IHT and passes away then the taxman would get £100k of it.
However, if that person instead decides to buy a 720s instead which depreciates £100k by the time they pass away then the only the residual value of the car is taken into account (£150k) so £60k goes to the taxman.
£100k was lost but only £60k was paid by the owner who benefited from the car. £40k was subsidised by the taxman.
What??? Your cash example means inheritance received of £150k. Your car example means inheritance received of £90k. The only winner is the person buying the 720 next.For example:
If someone has an estate large enough that £250k of cash in a bank account would be fully subject to IHT and passes away then the taxman would get £100k of it.
However, if that person instead decides to buy a 720s instead which depreciates £100k by the time they pass away then the only the residual value of the car is taken into account (£150k) so £60k goes to the taxman.
£100k was lost but only £60k was paid by the owner who benefited from the car. £40k was subsidised by the taxman.
mikiec said:
ralphrj said:
But as the car is depreciating it will be worth less and therefore less IHT will be due.
For example:
If someone has an estate large enough that £250k of cash in a bank account would be fully subject to IHT and passes away then the taxman would get £100k of it.
However, if that person instead decides to buy a 720s instead which depreciates £100k by the time they pass away then the only the residual value of the car is taken into account (£150k) so £60k goes to the taxman.
£100k was lost but only £60k was paid by the owner who benefited from the car. £40k was subsidised by the taxman.
What??? Your cash example means inheritance received of £150k. Your car example means inheritance received of £90k. The only winner is the person buying the 720 next.For example:
If someone has an estate large enough that £250k of cash in a bank account would be fully subject to IHT and passes away then the taxman would get £100k of it.
However, if that person instead decides to buy a 720s instead which depreciates £100k by the time they pass away then the only the residual value of the car is taken into account (£150k) so £60k goes to the taxman.
£100k was lost but only £60k was paid by the owner who benefited from the car. £40k was subsidised by the taxman.
mikiec said:
What??? Your cash example means inheritance received of £150k. Your car example means inheritance received of £90k. The only winner is the person buying the 720 next.
I didn't write it very well.Option 1. £150k inheritance left but didn't own a McLaren.
Option 2. £90k inheritance left but they did own and enjoy a McLaren. Although the car depreciated £100k in value it only reduced the value of the inheritance they left by £60k.
mikiec said:
What??? Your cash example means inheritance received of £150k. Your car example means inheritance received of £90k. The only winner is the person buying the 720 next.
Who’s estate will also benifit by 40% of its reduction by depreciation. It’s an excellent method of reducing one’s estate/liability once all the usual methods have been adopted.
ralphrj said:
mikiec said:
What??? Your cash example means inheritance received of £150k. Your car example means inheritance received of £90k. The only winner is the person buying the 720 next.
I didn't write it very well.Option 1. £150k inheritance left but didn't own a McLaren.
Option 2. £90k inheritance left but they did own and enjoy a McLaren. Although the car depreciated £100k in value it only reduced the value of the inheritance they left by £60k.
so you're arguing that people actually buy McLarens for tax reasons as they are planning for their imminent death. Oh come on, really 
The Surveyor said:
so you're arguing that people actually buy McLarens for tax reasons as they are planning for their imminent death. Oh come on, really I wasn't advocating it as part of IHT planning or suggesting that people are actually doing it. I merely tried to illustrate it with some figures.
hornbaek said:
ralphrj said:
But as the car is depreciating it will be worth less and therefore less IHT will be due.
For example:
If someone has an estate large enough that £250k of cash in a bank account would be fully subject to IHT and passes away then the taxman would get £100k of it.
However, if that person instead decides to buy a 720s instead which depreciates £100k by the time they pass away then the only the residual value of the car is taken into account (£150k) so £60k goes to the taxman.
£100k was lost but only £60k was paid by the owner who benefited from the car. £40k was subsidised by the taxman.
Well if you use that kind of rationale for planning your old age then I wish you good luck For example:
If someone has an estate large enough that £250k of cash in a bank account would be fully subject to IHT and passes away then the taxman would get £100k of it.
However, if that person instead decides to buy a 720s instead which depreciates £100k by the time they pass away then the only the residual value of the car is taken into account (£150k) so £60k goes to the taxman.
£100k was lost but only £60k was paid by the owner who benefited from the car. £40k was subsidised by the taxman.
Juno said:
I can't see the bottom ever falling out of the Senna or Ford GT market so I think he is quite safe but lets start taking bets as to how long it is before the video "Why I'm selling the Senna or Ford GT" to arrive
I stopped following him on social media the day he announced he was getting a Senna. Good luck to the guy, he's now a recognisable brand all of his on, but not my cup of tea any more. However, if I were to guess, I'd say that the Senna might be more of a keeper than the Ford. While his loyalties tend to waver between whoever's limited edition car he's set his sights on next, there does seem to be a particular and well-established relationship with McLaren.BelfastBoy said:
Juno said:
I can't see the bottom ever falling out of the Senna or Ford GT market so I think he is quite safe but lets start taking bets as to how long it is before the video "Why I'm selling the Senna or Ford GT" to arrive
I stopped following him on social media the day he announced he was getting a Senna. Good luck to the guy, he's now a recognisable brand all of his on, but not my cup of tea any more. However, if I were to guess, I'd say that the Senna might be more of a keeper than the Ford. While his loyalties tend to waver between whoever's limited edition car he's set his sights on next, there does seem to be a particular and well-established relationship with McLaren.SHMEE so possibly "Why I'm selling my Ford GT" video coming soon to a YouTube channel near you,lets see!
I suspect that if you look at the big picture, McLaren cars probably have just as many niggles and issues as other high end marques. Where it all seems to go wrong though is the time it takes to resolve the niggles and the apparent complete lack of interest from McLaren HQ toward Customers. They seem to deliberately disassociate themselves from the end Consumer, because that is what the dealer network is there for.
The dealers then get caught in the mddle, often struggling for ramp time, struggling to get parts, struggling to get support from HQ. There is also a very limited independent network, which just exacerbates some of the Dealer pressures.
I don’t know. I really want to like the brand. I love some of the cars and by all accounts they are awesome machines. I am particularly interested in the new GT car due out soon. I would be bloody nervous though dipping my toe in, i won’t lie.
The dealers then get caught in the mddle, often struggling for ramp time, struggling to get parts, struggling to get support from HQ. There is also a very limited independent network, which just exacerbates some of the Dealer pressures.
I don’t know. I really want to like the brand. I love some of the cars and by all accounts they are awesome machines. I am particularly interested in the new GT car due out soon. I would be bloody nervous though dipping my toe in, i won’t lie.
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