Finances in retirement

ShakespeareGirl

AlanP_2 said:

A SIPP is an option but you will be limited to £3600 a year gross contribution (you put £2880 in and tax man adds £720) as you will have no relevant income in future years. You can do this until age 75.

If you have worked this tax year you can contribute 100% of your salary (less pension contributions) probabaly and get tax relief which could get you the tax paid on the VS £15k back.

A S&S ISA sounds like a sensible option for money you can put away for 10+ years.

On a slightly different tack could a S & S ISA be used as a wrapper for investment in a family company? My son's startup (a spin out from his University) is doing well for investment so it doesn't need the money, but looks likely to be profitable (a new biological process with applications in lots of different fields).

Linton

ShakespeareGirl said:

AlanP_2 said:

A SIPP is an option but you will be limited to £3600 a year gross contribution (you put £2880 in and tax man adds £720) as you will have no relevant income in future years. You can do this until age 75.

If you have worked this tax year you can contribute 100% of your salary (less pension contributions) probabaly and get tax relief which could get you the tax paid on the VS £15k back.

A S&S ISA sounds like a sensible option for money you can put away for 10+ years.

On a slightly different tack could a S & S ISA be used as a wrapper for investment in a family company? My son's startup (a spin out from his University) is doing well for investment so it doesn't need the money, but looks likely to be profitable (a new biological process with applications in lots of different fields).

S&S ISAs can only invest in shares that are quoted on a recognised stock exchange.

Malthusian

ShakespeareGirl said:

On a slightly different tack could a S & S ISA be used as a wrapper for investment in a family company? My son's startup (a spin out from his University) is doing well for investment so it doesn't need the money, but looks likely to be profitable (a new biological process with applications in lots of different fields).

As Linton says the answer is no, unless it's a startup listed on AIM or another recognised exchange.

Could it qualify for the EIS or SEIS schemes?

Inheritance Tax has been mentioned as a concern and if your son's startup is an unlisted trading company, shares in it may qualify for Business Relief, which would make it free of Inheritance Tax two years after investment. (This would still be the case if it listed on AIM.)

At the risk of stating the obvious, this should only be done with money you could genuinely afford to lose (i.e. it would never make any difference to your lifestyle if you lost the lot).