Crystallisation and Tax Free Cash

david78

Thanks jamesd, I understand. I will be using 75% of my SIPP value over the first three years before my company pension starts at age 60 to pay out, at which point the amount invested would more gradually decrease, so I am not worried about the 75 year check.

I will look into VCTs.

Sterlingtimes

jamesd wrote: »

I suggest that you don't use the 25% for income first. Instead what I suggest you do is look into using a mixture of VCT and EIS. VCT provide nice tax relief but not IHT protection. EIS provides IHT protection after the money has been invested for two years. Both of these invest in relatively high risk companies but that comes with commensurate gain potential and you're playing a long game, not a short one.

Thank you, James. I transferred a substantial sum into capped draw-down last calendar year premised upon your advice. I think that I will transfer the remainder of my SIPP into capped draw-down on Monday. Another tranche of LTA percentage will then be firmed-up. I then secure another bite of my 25% before rendering unto Balls that that belongs to Balls. I then need to decide what to do with the cash. I will need to check out VCT (which I am aware of) and EIS (which I am not aware of).