Where to park my money

20122013

I am looking to minimise my tax on my savings interests and investments.

To minimise CGT, I am planning only to sell when I can move my investment into S&S ISA.

In terms of ISA allowance, for April 2026, I am planning to use money from my savings account to invest into a S&S ISA.

For April 2027 ISA allowance, the options I can think of is to put the funds in some savings account (already opened a Marcus 4.5% fixed account matures two months before April 2027 ) or invest the money in S&S now and then sell and buy S&S ISA from April 2027? My long term goal is to invest and minimise tax.

I want to see whether my plan make sense?

eskbanker

For April 2027 ISA allowance, the options I can think of is to put the funds in some savings account (already opened a Marcus 4.5% fixed account matures two months before April 2027 ) or invest the money in S&S now and then sell and buy S&S ISA from April 2027?

If your £20K was invested and grew by enough to incur CGT, i.e. by more than £3K, then >15% growth would be a nice problem to have, despite some of it being taxable! Obviously there's a non-trivial probability of growth being less than the 4.5% you'd get in savings over a short timescale, so it would be a gamble to invest.

My long term goal is to invest and minimise tax.

I want to see whether my plan make sense?

In general it's far better to aim to maximise net return rather than to minimise tax as such, as these often aren't the same thing.

20122013

https://forums.moneysavingexpert.com/discussion/comment/81858087#Comment_81858087

Appreciate your posts and the helpful breakdown (as always).

kempiejon

In terms of ISA allowance, for April 2026, I am planning to use money from my savings account to invest into a S&S ISA.

Wouldn't it be better to sell shares using the CGT allowance first rather than move cash.

I agree that maximising returns could beat minimising tax. A sure way to minimise tax is not to make profit or take an income.

With the larger allowances a few years backs profits on unsheltered stocks could be £12k. Whatever the limit it is worth selling enough unsheltered profitable investments each year to nudge up to that level, waiting until the end of the tax year just in case a corporate action forces a profit on you.

Short dated gilts are helpful, low coupons and capital gains exempt as are some gold coins.

20122013

https://forums.moneysavingexpert.com/discussion/comment/81858471#Comment_81858471

Another great option, as I want to start investing but has not ISA allowance left so I will invest now and then sell and use buy back my S&S ISA allowance. It does not sound straight forward to work out how to do it, as in another post someone had mentioned, 'CGT - Bed & Breakfast Rules'?

Also, looking into index tracker index linked bonds (sorry forgot the actual name) instead of index linked gilts. (still not got my head around it)

Vitor

• I want to see whether my plan make sense?

Give or take yes, however Premium Bond winning are tax free and gold coins which are legal tender don't attract CGT on sale.

20122013

https://forums.moneysavingexpert.com/discussion/comment/81859203#Comment_81859203

Gold - will it make more sense to buy a index fund or bond instead of holding physical gold?

Bigwheels1111

My friend buys Britannia 1oz gold coins.

For two reasons.

As an investment and because you can spend them anywhere in the world.

His original home country does not allow money in or out.

So a system where he gives a broker money here and the broker gets money available in his country for a fee.

Quite expensive.

The coins can be sold in his country for the same price as here, but in the currency he wants.

saajan_12

https://forums.moneysavingexpert.com/discussion/6652537/where-to-park-my-money

Nothing you're saying really minimises / maximises / affects the tax. If you have savings and shares in non-ISA accounts then the interest and gains made will incur tax regardless of what you do. Yes you should move the shares and/or cash to ISA accounts as and when your ISA allowances allow to avoid paying tax. Which order you do that in makes little difference, other than using up your allowances:

• £1000 / £500 / £0 allowance for savings interest depending on your tax band - if you're not using that up this year, then you could leave some cash in normal savings accounts for longer as you won't pay tax on the interest anyway below the relevant PSA.
• £3000 CGT allowance - if you're not using that up this year then you could realise some gains this year without incurring tax, and the same next year.

How much are we talking in non-ISA savings and non-ISA investments? That'll help guide.

jimjames

https://forums.moneysavingexpert.com/discussion/comment/81859164#Comment_81859164

Bed & breakfast rules are not of any relevance for money going into an ISA. That's purely for investments outside the tax shelter.