What to do?

artyboy

If it was me, I'd pay the mortgage off. It's a question that comes up from time to time, and the reality is that for some people, it's as much a question of psychological security as it is about maximising returns. For me, the ability to pay off the mortgage while in my 30s meant I knew I had a home for life, whatever bumps might come along after. And that is worth far more than the opportunity cost of a few percentage points of growth elsewhere.

Not everyone thinks this way, but something to consider...

homestraight

Is it worth looking at maxing out this financial year's pension contributions, and any carry forward, in advance and expectation of that 800k coming in April?
You might have reduced drawings/income for a bit but might get a good chunk pension protected? 

I'd consider paying off any lump off pension that doesn't have ERC. Usually it's 10% it something.

30andcounting

dharm999 said:

Will you be exiting the business when it’s sold?  Is there the possibility of taking part of your share of the sale proceeds as redundancy and/or notice pay, if that’s isn’t in your t&cs of employment.  Given the values involved, it’s worth asking.

No I will be staying on, we're all agreeing retention bonus' at the min

30andcounting

homestraight said:

Is it worth looking at maxing out this financial year's pension contributions, and any carry forward, in advance and expectation of that 800k coming in April?
You might have reduced drawings/income for a bit but might get a good chunk pension protected? 

I'd consider paying off any lump off pension that doesn't have ERC. Usually it's 10% it something.

Corrected its 10% I've checked. 

Re pensions, I know there is a £60K a year limit which is taped if your earnings are above £260K. I haven't used the last 3 tax years allowance, so lets say I made a one off contribution of £100K this year do I have to notify HMRC or just include on my tax return? Presume they review and allocate the £40K to a prior tax years unused allowance - just don't want to end up getting a tax charge.