End of tax year - help!

cjgrey

I know I've left this rather late but I've only just realised that tomorrow is the last working day before the end of the tax year! I know I need to get some proper financial advice asap but any help with understanding what I need to do before the end of the tax year would be much appreciated!

I've put all of this into one question but if I should split it up, please let me know.

I'm 48. I'm not working now but until recently I was in a job which wasn't liable for UK tax (intergovernmental organisation) so I haven't used any of my personal allowance for last year - I don't know if that's relevant. I don't have any existing ISA's, personal pensions or other investments.

My questions relate to:

Capital Gains tax - I sold my old house last week and I am expecting to have to pay about £12K in capital gains tax (taxable gain of £72K). I assumed I would just have to pay it, but then someone in a similar situation told me that her IFA was investing the money to defer the CGT. Is that something I should be doing? If so, can someone point me in the right direction, please??

S&S ISA - I was thinking of opening an H-L Vantage account and putting £7,200 into the S&S ISA but holding it as cash, until I can get some proper advice in the new tax year. Is that sensible?

Pension - I've only just realised that you can get tax relief as a non-taxpayer so I was thinking of putting £2,880 as cash into the Vantage SIPP to take advantage of the £720 tax rebate, again just until I get some proper advice. Is that sensible too?

Thanks very much for any help.


Catherine


ps Dunstonh - If you're reading this, I sent you a PM last week, just wanted to check you'd got it. Thanks

Lokolo

Its a good idea to do that. HL have limited time to do it though so if you don't have an account it maybe difficult to open it online and fund it by Friday.

Do you have any sort of pension at the moment? At 48 you don't have a lot of time to save up so its best to get started, which it seems you want to.

Any reason why you want to have a personal pension? There are others available to you.

Have you ever invested before? Even though the money is in the account you'll have to invest it somewhere.

https://www.fidelity.co.uk/investor/guidance-planning/plan-portfolio/myplan-portfolio-quickstart.page?

You can do that to have an idea of where to invest.

Also Dunston is a busy person and doesn't always reply to PMs

barak

cjgrey wrote: »

I know I need to get some proper financial advice asap

Yes, you do! I don't wish to be unhelpful, but there are far too many unknowns about your circumstances for anyone here to make any useful suggestions. You need a face-to-face meeting with an IFA - and as you say you have left it rather late to take advantage of any possible opportunities before the end of the tax year.

cjgrey

Hi Lokolo/Barak

Sorry, Lokolo, I wasn't very clear - I've got a couple of employer's pensions, just no personal pensions. And no, I've never invested before - that's why I think I need a financial advisor!

Barak - Thanks, but I was trying to avoid getting advice and/or making big decisions when I haven't got time to think it through properly, especially at this time of year when IFA's must be really busy. That's why I thought it could be a good idea to set up the Vantage account so that I could lock in this year's allowances now and wait until after 5th April to get some advice on what to actually invest in. Do you think that's a bad idea?

Thanks for your help.

Catherine

barak

cjgrey wrote: »

.....I thought it could be a good idea to set up the Vantage account so that I could lock in this year's allowances now and wait until after 5th April to get some advice on what to actually invest in. Do you think that's a bad idea?

No, Catherine, I don't think it's a bad idea. I agree that's one useful thing you still [just] have time to do which makes sense without committing yourself to something you haven't had enough time to think about.

I'm not familiar with the workings of HL's Vantage S&S ISA account, but assume that you can open it online and credit it instantly with cash using your debit card, as you can with other providers.

cjgrey

Hi Barak

Sorted! Have put £7200 into S&S ISA, and will add £2880 to SIPP later today when online account is set up.

Think I have found out about the CGT deferral - apparently you need to invest in an EIS Fund - I understand this is very risky so probably not for me! - but apparently you've got three years to decide in any case.

Many thanks!

Catherine