most tax efficient saving (I'm 52)

spencer999

I've got a private pension and I'm 52 and self employed. Would putting as much as I could into the pension (with Zurich) be the most tax efficient way to save? I know I can't touch it for 2 1/2 years.

Is the difference between an isa and putting it under the mattress marginal?

This might be blindingly obvious but this morning I just realised that you can't claim income tax back on the money you put in an isa.

Or can you...

Basically I want to minimise my income tax AMAP.....legally.

CHAIRS!!

xylophone

The money contributed to an ISA earns tax free interest.

Money contributed to your pension benefits from tax relief.

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

colsten

xylophone wrote: »

Money contributed to your pension benefits from tax relief.

That is true on the way in (to your pension pot) (subject to LTA).

When you come to draw your pension, you can take out 25% tax free and the rest will be taxable. That's current legislation and may change over the next few decades.

MDMD

colsten wrote: »

That is true on the way in (to your pension pot) (subject to LTA).

When you come to draw your pension, you can take out 25% tax free and the rest will be taxable. That's current legislation and may change over the next few decades.

Or could change in the next few years (or months), depending on what Osbourne does. OP might have just enough time to escape most of the changes....


http://www.thisismoney.co.uk/money/pensions/article-3328398/Pensions-backlash-Osborne-faces-calls-reverse-planned-tax-grab-follow-guide-know-mean-you.html

colsten

MDMD wrote: »

Or could change in the next few years (or months)

that would be within my definition of over the next few decades

spencer999

If I took 25% a year would it be entirely tax free, future law change notwithstanding?

Eco_Miser

spencer999 wrote: »

I've got a private pension and I'm 52 and self employed. Would putting as much as I could into the pension (with Zurich) be the most tax efficient way to save? I know I can't touch it for 2 1/2 years.

Probably.

spencer999 wrote: »

Is the difference between an isa and putting it under the mattress marginal?

Yes for cash, no for S&S.

spencer999 wrote: »

This might be blindingly obvious but this morning I just realised that you can't claim income tax back on the money you put in an isa.

Or can you...

No tax on cash ISAs to claim.
Your S&S ISA manager will reclaim the withheld tax on Gilts and other interest-bearing bonds and funds for you.

spencer999 wrote: »

Basically I want to minimise my income tax AMAP.....legally.

Personally, I prefer to maximise my after-tax income - there is a difference, see high interest current accounts.