£40k to invest, high rate tax payer

a7man

Hi

I have 40k to invest, I'm a high rate tax payer and I'm looking for an investment that will protect my investment during these gloomy times. I was thinking the best thing to do would be to invest in a S&S ISA and an OEIC in low risk funds, therefore does anyone know of any funds that they would recommend?

A fixed rate bond doesnt really make sense due to the tax reductions on the interest barely breaching inflation but any other suggestions?

I also read that interest rates will be cut by November so was thinking I might hold out until then as there will be more lucrative opportunities.

whu

you could also think about investing £3600 into a cash ISA if you have not yet used your allowance - also you could consider NS&I index linked certificates - both are tax free

dunstonh

Low risk funds would typically mean higher yielding funds and whilst that is fine in the ISA, it would create a higher rate tax liability when unwrapped.

A CGT chargeable Guaranteed equity bond may be an option for you. Or NS&I index linked certs depending on your overall portfolio and requirements.

a7man

Ok, so I'm going to invest the max £15 000 into the next issue of IL saving certificates and £3600 into a S&S ISA, my cash ISA is full already.

I'm not a big fan of guaranteed equity bonds so I'll be looking for an alternative if anyone has any suggestions for the remaining £21 400?

Lokolo

My bank account is -£622 so send it this way if you want?

Not much of a return on the investment though, I can give you 1% interest....

Jonbvn

a7man wrote: »

Ok, so I'm going to invest the max £15 000 into the next issue of IL saving certificates and £3600 into a S&S ISA, my cash ISA is full already.

I'm not a big fan of guaranteed equity bonds so I'll be looking for an alternative if anyone has any suggestions for the remaining £21 400?

You can put £15k into the 3-year IL saving certs & another £15k into the 5-year certs.

Any possibility of putting money in your partners name, assuming they are a basic rate tax payer?

a7man

I'm single so dont have that option unfortunately! That only leaves £6400, I could dabble in a few growth equities I suppose - I'll have to do some fund research.

bristol_pilot

Just sit on the rest until the next Issue of NS&I IL certificates comes out. We had three issues in quick succession not so long ago.