Looking for options on what to do with £130k

TheBanker

gascar said:

If you want to put it into a pension , you can carry forward unused allowance from the 3 previous tax years, which I assume will be your income in those years - unless you're paying onto a company scheme, then you need someone who can work it out!

Doing that won't give you any more income right now, of course.

Some people are very happy with an Air BnB property - depends where you live.

House prices are falling so you might snag a bargain, ready for the rise when rates fall back.

I don't think this is correct. You can contribute up to your earned income this year. There is also a cap of £60k, which was £40k in previous years. You can carry forward any of the £40k that you didn't use in the last two years, but still can't exceed your current year's earnings. 

Air BnB can be profitable - I know someone who has one - but it depends if you want to dedicate time to managing it. My friend wouldn't describe it as easy money. A couple of times she's had to go and clean it on changeover day when the cleaner has let her down at the last minute. And there are costs associated with repairs, re-decoration, replacing items (bedding etc) that are damaged or worn out. My friend says it's profitable but not as much as she expected, and it's more work than she expected too. Plus she has to deal with a constant stream of family and friends expecting cheap/free holidays!

ColdIron

gascar said:

If you want to put it into a pension , you can carry forward unused allowance from the 3 previous tax years, which I assume will be your income in those years

Only to the extent of your relevant earnings in the current year. You can carry forward unused allowance but not previous income

xylophone

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

What exactly is your occupatonal/private pension provision?

gascar

TheBanker said:

gascar said:

If you want to put it into a pension , you can carry forward unused allowance from the 3 previous tax years, which I assume will be your income in those years - unless you're paying onto a company scheme, then you need someone who can work it out!

Doing that won't give you any more income right now, of course.

Some people are very happy with an Air BnB property - depends where you live.

House prices are falling so you might snag a bargain, ready for the rise when rates fall back.

I don't think this is correct.

The phrase was lifted from the .gov site, I refer the original poster there.

It's not incorrect, I didn't say you could put it all into a pension.

I said you'll need advice, to see how much you can put into a pension (with the gov tax uplift). Beyond that amount there's no point.

The actual amount this year will depend on factors we don't know about.