SIIP contribution without tax relief?

talexuser

Yes, I meant investment trusts with the disadvantage of not having any tax wrappers left.

TH1878

If simplification is important to you, I would do some more research into investment bonds then.

There's a lot of research into the Collectives v Bonds argument but let me know if you have any questions.

jamesd

talexuser wrote: »

Yes, I meant investment trusts with the disadvantage of not having any tax wrappers left.

You've used your full new purchase VCT allowance, purchased all available VCT shares on the stock market, used your full EIS allowance and your full SEIS allowance? Seems unlikely that you've really invested a few tens of millions already.

New purchase VCT allowance: Up to £250,000 a year with 30% tax relief, capped at the income tax paid. Income from VCTs is tax free and there is no CGT. Typical incomes from generalist VCTS is 5% or so before the 30% relief effect, 7-8% after, with up to 10-11% available.

Stock market VCT purchase allowance: there is no limit on the value of VCT shares that can be purchased on the stock market. There is no initial 30% relief but the income remains tax free and there is no CGT.

EIS: 30% initial relief for new shares, up to £1million of total purchase per year, no CGT but taxable income. Can use past year limit if desired.

SEIS: 50% initial relief for new shares. Can use past year if desired. Taxable income. No CGT.

Investment trusts have the advantage of being more general because they can hold a wide range of normal fund investments. But they have the disadvantage of not really providing the same sort of level of tax relief.

talexuser

Thank you both. My isa funds have done well over 20 years plus so far, and have been relatively conservative income funds accumulating, and have done better than the indexes... a few forays into the more volatile international and tech areas have not done as well overall.

TH, any links to investment bonds would be welcome, since I would need to read up more to understand all the T&Cs.

James, I wondered if VCTs were beyond my risk tolerance, but since all isas and pensions are effectively maxed out, they do present a viable option from the tax point of view. Again any links would be welcome to understand the performance of more "steady" performers.

Trying to do my research and conform to best advice of not buying anything you don't understand yet!

jamesd

Try an advanced search for VCT from poster jamesd and you'll find a variety of posts where I describe the Albion VCTs. Like many of the P2P options many of the VCTs that they manage, including the one called Albion VCT, do secured lending. In the case of the Albion VCT many of its investments are sufficiently low risk that they are now prohibited for new VCTs.

Best to call the cheap number in the back of the prospectus before trying to invest. While the formal closing date is 30 September 2015 they might be fully subscribed by now, or might be for some of the VCTs in the collection. Just ask which ones are still open for new subscriptions and they will tell you. If you also ask when the next "allocation event" is that is the date on which any shares you purchase will be allocated to you.

There are many other interesting generalist VCTs but we're very late in the season for the 2014/15 offers now and it'll be September or October before the start of the 2015/16 VCT season begins.