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@will99 - can you cancel your ISAs (I know there will be penalties, but is it worth it considering the CMS assessment) and instead transfer that money into an additional pension? That way CMS leave it out of their calculation and you can then use that pension to pay off the mortgage (which attracts tax and NI relief, with the added advantage that 25% of the pension withdrawal is taken tax free) once you are over 55? Obviously, I am not qualified in any way financially, so if you consider this, get professional financial advice to make sure you are aware of any issues, but it may sort out your issue with CMS.
@actd That is a very good idea that has been staring me in the face without me thinking of it !
The only thing I would have to be bear in mind is breaching the 'acceptable pension provision' calculations (i.e. para 36020 of the variations document), though I know I have some scope before that happens.
Also that I have enough of my allowed 25% to take this value back out again without impacting my other plans for the 25% lump sum withdrawal.
But yes a very good idea - thank you !
My annual review is in 2 days, so they may want to see the ISA balance as at that date and calculate notional income accordingly, so not much time for me to organise this suggestion. However I understand that it is only earned income that has to change by 25% in order for a new calculation to be done for the current year - a change in any other income (such as notional income) can trigger a current year recalculation regardless of how much it changes by. So I could tell CMS of a changed asset valuation (and thus notional income calculation) whenever I have organised putting the ISA money in to a pension.
I'm sure I've seen a document about this on here, but can't remember where it is - can anyone else remember it?
Hopefully not a hijack.
Under the financial order (which went to court) the home was sold & money's paid.
After paying debts, and putting aside some money for the children's trust funds/junior isa I will have around £35k which I had planned to put into an isa (£20k now, rest after 6th April)
Just caught this thread and worried CMS will be after that as well!
Any advice on best way to proceed with my savings? It's short term to hopefully help me buy my own place. But I'm not ready for that yet.
Hopefully not a hijack.
Under the financial order (which went to court) the home was sold & money's paid.
After paying debts, and putting aside some money for the children's trust funds/junior isa I will have around £35k which I had planned to put into an isa (£20k now, rest after 6th April)
Just caught this thread and worried CMS will be after that as well!
Any advice on best way to proceed with my savings? It's short term to hopefully help me buy my own place. But I'm not ready for that yet.
The rules state that the £31,250 threshold applies to each individual asset. So £35,000 in one place (eg. a current account, or an ISA or whatever) would qualify for inclusion in a notional income calculation (should the other party request one). However £20k in one place and £15k in another place (eg. one in a NatWest current account and the other in a HSBC account or ISA or something) - neither exceeds the threshold and neither would be eligible for inclusion in a notional income calculation.
I would get some financial advice, but it does seem like you could be caught by CMS until you actually buy your new home
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