Investing lump sum without paying lots of tax
I have unexpectedly received a pay out. I think it will be about £80k after tax. As the payment is taxable, in addition to my normal pay, it will make me a higher rate tax payer this year. So looking to invest it without going crazy paying tax. I won’t be working in the next financial year.
I already have max premium bonds. I have a stocks and shares ISA (about £16k from previous years) but haven’t felt confident in my investment ‘decisions’ and now I am going to have to live on my savings for the future 6.5 years until my pension pays I am slightly more risk adverse. I also have about £9k in various regular savings accounts.
So my possible plan is to put it into a one year fixed bond that pays the interest next year which hopefully will delay the interest and stop me paying tax unnecessarily. Does this sound ok. Does anyone have a view on the best bond to pay out in the next financial year. I did wonder about putting the money in a longer bond but who knows what will happen to interest rates.
★ ★ ★ Meet your Ambassadors
- All Categories
- 338.8K Banking & Borrowing
- 248.6K Reduce Debt & Boost Income
- 447.6K Spending & Discounts
- 230.7K Work, Benefits & Business
- 600.9K Mortgages, Homes & Bills
- 171.1K Life & Family
- 244K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards