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Not many people realise but the U.K. is a great place to both work towards FIRE and be FIRE’d.
I’ve made a twitter thread to show the reasons why:
Read on to find out more
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I’ve made a twitter thread to show the reasons why:
Read on to find out more
1/9
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First, Generous tax incentives for investors.
The UK government wants people to save for retirement so have given us some valuable tools for the job in the form of ISAs and pensions.
They are set up for normal retirement but we can still use them for FIRE!
First, Generous tax incentives for investors.
The UK government wants people to save for retirement so have given us some valuable tools for the job in the form of ISAs and pensions.
They are set up for normal retirement but we can still use them for FIRE!
3/9
Stocks and Shares ISAs provide a tax shelter where all gains and dividends are tax-free. £20k annual allowance. No limit on growth.
Use this to bridge the gap to your pension.
Stocks and Shares ISAs provide a tax shelter where all gains and dividends are tax-free. £20k annual allowance. No limit on growth.
Use this to bridge the gap to your pension.
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Pensions provide tax relief on income of up to £40k annually.
Save £10k and the government will give you £2k. Higher rate taxpayers will get £4K. You pay £6k and get £10k in your pension. Limit of £1m total.
Pensions provide tax relief on income of up to £40k annually.
Save £10k and the government will give you £2k. Higher rate taxpayers will get £4K. You pay £6k and get £10k in your pension. Limit of £1m total.
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Second, tax allowances.
Pay no tax up to £12500 of annual income.
Capital gains tax only kicks in after £12300 gains. Perfect for the drawdown stage of FIRE.
£2000 of dividends tax-free per year. 7.5% thereafter.
Can you see what I’m getting at?
Second, tax allowances.
Pay no tax up to £12500 of annual income.
Capital gains tax only kicks in after £12300 gains. Perfect for the drawdown stage of FIRE.
£2000 of dividends tax-free per year. 7.5% thereafter.
Can you see what I’m getting at?
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If you structure your investments right, you can have up to £26800 of tax-free income per year.
That’s the same as a job earning £34k a year.
Plus you can get whatever income your ISA produces tax-free on top of that.
At age 55 you get 25% of your pension tax-free.
If you structure your investments right, you can have up to £26800 of tax-free income per year.
That’s the same as a job earning £34k a year.
Plus you can get whatever income your ISA produces tax-free on top of that.
At age 55 you get 25% of your pension tax-free.
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Lastly, low cost of living.
London and the South East are amongst the most expensive places to live on the planet, but the U.K. has some super cheap and nice places to live if you don’t need to work.
- Scotland
- Wales
- Cornwall
- Northumberland
- Rural England
Lastly, low cost of living.
London and the South East are amongst the most expensive places to live on the planet, but the U.K. has some super cheap and nice places to live if you don’t need to work.
- Scotland
- Wales
- Cornwall
- Northumberland
- Rural England
8/9
You like the city life?
These cities offer bargain accommodation and great facilities:
- Newcastle
- Liverpool
- Glasgow
- Leeds (less so)
- Manchester
Plus, UK is close to most places in Europe.
You like the city life?
These cities offer bargain accommodation and great facilities:
- Newcastle
- Liverpool
- Glasgow
- Leeds (less so)
- Manchester
Plus, UK is close to most places in Europe.
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Thanks for scrolling all this way!
I hope that's opened your eyes to FIRE in the UK.
It's a great time to start working toward it and the rewards are for the taking when you get there.
Thanks for scrolling all this way!
I hope that's opened your eyes to FIRE in the UK.
It's a great time to start working toward it and the rewards are for the taking when you get there.
