Weekly Roundup, 14th May 2019

Weekly Roundup 190514

3 Responses

  1. Avatar Al Cam says:

    Mike,
    A plausible explanation for why the LTA is based on current value rather than contributions is given at https://firevlondon.com/2018/04/08/how-many-isa-millionaires-are-there/ See in particular the exchange between Jon & John in the comments to the post.

    • Mike Rawson Mike Rawson says:

      Hi Al,

      Thanks for the link. It’s certainly plausible that HMRC haven’t kept records of pension contributions (though they do go on personal and company tax returns, unlike ISA contributions).

      But that doesn’t justify an output cap. The point is that it penalises success – good investors pay more tax. It’s like saying no team is allowed to score more than three goals in a football match.

      Mike

      • Avatar Al Cam says:

        From my own experience, it seems pretty clear that any record of contributions is lost on transfer of a DC/SIPP between products/vendors/platforms. With respect to any HMRC records I just do not know.

        I understand all your points about applying the cap to the output.
        If, however, as the link hints, the inputs are unknown then it would be rather impractical to implement a cap based on those inputs.
        The football analogy is rather timely given that Manchester City is now effectively facing such a ban!

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Weekly Roundup, 14th May 2019

by Mike Rawson time to read: 4 min
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