High Earner Options

moneysavergirl2

My husband and I are both, after many years of hard work and graft, higher rate tax payers. My husband is a top rate payer.

We have used all usual tax saving options including maxing pension contributions and ISAs, and Premium bonds. We have a simple lifestyle and his job in particular takes a toll and there is a limited amount of time he will be able to do it.

Are there any other ways we can put our savings to work while minimising tax? We pay such huge amounts of tax already that I hate the thought of using a savings account and paying tax on half of the interest.

I'm aware of VCTs.

Can anyone point me in the direction of anything else, or a group or other ideas please? 

wmb194

moneysavergirl2 said:

My husband and I are both, after many years of hard work and graft, higher rate tax payers. My husband is a top rate payer.

We have used all usual tax saving options including maxing pension contributions and ISAs, and Premium bonds. We have a simple lifestyle and his job in particular takes a toll and there is a limited amount of time he will be able to do it.

Are there any other ways we can put our savings to work while minimising tax? We pay such huge amounts of tax already that I hate the thought of using a savings account and paying tax on half of the interest.

I'm aware of VCTs.

Can anyone point me in the direction of anything else, or a group or other ideas please? 

Buy gilts trading below par and hold them to maturity as capital gains are tax free. Last I checked there were still a few trading below par with a c.4% yield to maturity, most of which being a tax free capital gain.

Albermarle

 We have a simple lifestyle and his job in particular takes a toll

One way to pay less tax, is to have a less well paid job that brings less stress. Especially as it sounds like you do not spend that much money anyway. 

trailingspouse

Charitable donations using Gift Aid would at least mean your charity of choice benefitted by reclaiming 25% of the tax.

Ciprico

Give money to children, as cash, Lisa, Sipp or isa...

Bring forward any future spending ie spend it now on things you know you will have to buy in the future....

Buy the book "Die with Zero" !

george4064

VCTs, EIS, SEIS and charitable donations come to mind.

george4064

trailingspouse said:

Charitable donations using Gift Aid would at least mean your charity of choice benefitted by reclaiming 25% of the tax.

If the donor files a tax assessment each year, they can claim further tax on the donation if they’re a higher or additional rate tax payer.

Flugelhorn

Albermarle said:

 We have a simple lifestyle and his job in particular takes a toll

One way to pay less tax, is to have a less well paid job that brings less stress. Especially as it sounds like you do not spend that much money anyway. 

Agree - be aware of thresholds and work less 

EthicsGradient

There's no capital gains tax on your primary residence, so you might consider buying a larger (nicer, etc.) house.

robaber

I am guessing by maximising pension contributions, you are also including SIPPs. 

It sounds like you are taking all the normal steps to minimise tax. 

In your situation, I may shift my focus from further trying to minimise tax, to wealth growth e.g. investment outside of an ISA in a GIA or property. 

saveallmymoney

If you are both putting £60k each into your Pensions and 20k each into your ISA's then my advice is to live a little. With a £160k a year savings rate and a "simple lifestyle" you are both only a few years from retiring anyway.