How to invest £45.5m

suchong

amcluesent wrote: »

Gonna be a bother opening 450 separate banks accounts to ensure you have the £100,000 protection...Oh, wait. Just open an NS&I income bond @ 3.95% and enjoy £148,000/month

Not quite... they'd be crucified by the 50% tax rate. Which I think is very harsh on any hnw individual who wishes to invest conservatively by staying in cash.

Most other investments are taxed at 18%, and even if that rate rises, tax will be payable when an investment is sold, allowing each yearly gain to roll up with the original investment.

If inflation moves significantly higher, the value of £48 million held in cash will fall rapidly if half the interest must be handed to the government each year.

RayWolfe

Crucified?
If someone can't give back something after getting a windfall of that size, what have we come to? If you had it and were too mean to help others the answer is a simple one: don't invest any of it, live on the capital, pay NO tax, let others provide your services for you!

Myrmidon_J

tonytsdiver wrote:

So just how do you invest £45.5m then?

Buy a small island and set up a socialist paradise, of course.

(I'd set up a factory to produce left-footed boots only, just to make sure that it was a genuine socialist paradise...)

[Deleted User]

Hi,

I wouldn't look for any publicity, and keep the fact that I had won a good whack to myself, though, I would be generous to family, friends, and local charities, in a very discreet way.

atypical

musehead wrote: »

Can you decline all publicity?

Yes. It's what I would do but I'd have to start playing the lottery to ever be in that situation

Viperz-43

45 mil?
5 mil to buy 1 house to live in and some cars.
40 mil, put into investments trusts, buy as many houses as you can, n live off the rent

lingwood

I am hoping I go into work on Monday to be told we have won it!!!

Or maybe even £50 would be nice.

suchong

Of course any reasonable hnw individual should be happy to give something back.

But it's a pity that the tax system penalises the cash option so heavily that one feels almost forced into more risky or structured assets, for which gains can be rolled up or assessed for CGT. Wasting time and money (eg. in advisory fees) in the process.

As there's a considerable risk that assets left in cash for too long will be devoured by inflation and the 50% tax.

mikey72

I'd just buy a really big sock, put the cash in, then spend £1m a year until I was dead.

Aegis

suchong wrote: »

Of course any reasonable hnw individual should be happy to give something back.

But it's a pity that the tax system penalises the cash option so heavily that one feels almost forced into more risky or structured assets, for which gains can be rolled up or assessed for CGT. Wasting time and money (eg. in advisory fees) in the process.

As there's a considerable risk that assets left in cash for too long will be devoured by inflation and the 50% tax.

The 50% tax bracket only applies to the earnings above £150,000. Someone investing large sums in cash with more income than that is probably rich enough to do without half their interest.

The higher rates of tax also apply to interest payments and dividends on investments, so it's not like they're being unduly punished for staying in cash. Capital Gains Tax is the only one they'd be able to get down to 18% with, and I would imagine that CGT at such a low rate is very unlikely to last much longer.