Financial advice/recommendations needed

SnowMan

As a higher rate taxpayer you definitely need to think about using your cash ISA allowance as that will protect you against paying 40% tax on interest for as long as the existing ISA rules apply. And think about the same next tax year etc.

If going for equity investments consider using your investment ISA allowance also, as that will save you on additional tax on dividends and avoid possible capital gains issues.

If you are married you should consider putting some of the savings into your wife's name if she pays a lower marginal rate of tax.

Not sure how old you are but have you thought through your retirement plans and how that will be funded?

Don't assume that your job is secure. While it may be you need to plan for the worst case scenario by having an emergency fund or plan to get you by in case the worst happens, until say you are able to sell the property.

Borrowing further money against the property is to an extent mis-matching your assets and liabilities (especially if you diverted that into risky investments) so think carefully before you do that especially as you do already have savings to use as an emergency fund. The greater the equity in your property the better the mortgage deals you will be able to obtain also. Again crunch the numbers bearing in mind your savings won't earn a great rate at present and will be taxed at higher rate albeit increasing your mortgage will presumably reduce your net profit from the property let which will affect tax also. However do consider whether you can remortage onto a better deal see the remortgage guide.

The best thing you can do is to not blindly follow advice either from this forum or through independent advice. Educate yourself into understanding your own situation by looking at sites such as this.

If you have thought things through first you will be in a much better position if you then decide to obtain independent financial advice. An accountant may certainly be able to help you minimise tax as rollinghome says.

Ark_Welder

Rollinghome wrote: »

With the ending of commission for new sales at the end of 2013 be particularly wary of attempts to lock you into inappropriate investment bonds with misleading claims about the tax advantages.

The OP has stated that they are a higher-rate taxpayer, so an investment bond would be a valid consideration.

Information regarding the taxation of the bonds available to solicitors and accountants: http://www.taxationweb.co.uk/tax-articles/general/guide-to-the-taxation-of-investment-bonds-for-accountants-solicitors-and-policyholders.html