Cash

masonic

https://forums.moneysavingexpert.com/discussion/comment/82085279#Comment_82085279

In fairness, that's a non-sequitur. Warning against one thing isn't equivalent to promoting everything that isn't that thing. There can be more than one bad choice or bad category.

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/82085292#Comment_82085292

Agreed, semantically, but it could easily be read as "under £100 is OK".

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82085305#Comment_82085305

Yes I suppose so. Especially since the pool the OP is fishing in will have quite a lot of gilts priced in the 99s and only 2 priced below that.

Having said that I don't feel that bad about gilts I have bought with a clean price in the 99s and I can't even claim they are all in ISAs.

PixelPound

https://forums.moneysavingexpert.com/discussion/comment/82084980#Comment_82084980

Not realistically, whilst every £1 PB has the same chance at winning as any other, saying people will get more or less the return rate irrespective of their holding size is deceptive. If you hold on to that £50 PB you were gifted when you were born, at an average of 1 prize every 37 years, you might eventually get something, but could just as easily never win over your lifetime. Even £5000 means an average of 2 prizes a year, but you could have none in a year or maybe win £75 ( which is 1.5% return).

Look at the PB prize thread people say what they've won that year, not the averages over the decades, especially as the rate is updated regularly.. On average with full holding someone will get £1650 in prizes over a year, or 3.3% no where near the 3.8% as the big prizes skew it. PB's definitely have a role, but more for higher rate tax payers who have maxed out ISA, pension etc. Most of the time there are better alternatives, and everyone should be aware that it's unlikely they'll get anywhere near the headline rate.

PixelPound

https://forums.moneysavingexpert.com/discussion/comment/82085279#Comment_82085279

Any gilt with a clean price of above £95 has has a coupon above the current BoE rate, exception being those that mature very soon. The best tax advantage in a taxable account is the lowest coupon for your preferred maturity date. Rather than simply lowest cost I would look at YTM, since that's a better comparison indicator.

markharriers

Thank you to everyone who has taken the time to reply its much appreciated. I have been having a think and also doing lots of research and have decided for this tax year at least to salary sacrifice. My company offers this monthly it is self managed by me and I tell them by a certain date how much to add to my pension each month. I would like to list my plan below and again any input would be much appreciated.

*what i understand so far

• Tax Year 26/27 i need to earn below £50,271 gross.

• I earn dividends, savings and also get a yearly bonus i need to factor this into my calculations to stay below threshold.(the tough bit!)

• The money i sacrifice will go into my pension with no tax taken off and a relief in NI. The max i can add is £60k as this figure is lower than my annual earnings.(also need to take into account contributions made already this year)

I can then be classed as a 20% tax payer for the current tax year which would also lower my CGT when house sale is completed.

Can anyone else think of anything else?

DRS1

I can then be classed as a 20% tax payer for the current tax year which would also lower my CGT when house sale is completed.

I am not sure it is as simple as getting yourself £1 under the higher rate threshold and you pay a lower rate of CGT. See here

Capital Gains Tax: what you pay it on, rates and allowances: Capital Gains Tax rates - GOV.UK

markharriers

https://forums.moneysavingexpert.com/discussion/comment/82091599#Comment_82091599

Sorry for being vague. So after working the capital gain out and the gross pay after salary sacrifice they would charge me the rate for a 20% tax payer up to the 40% limit then anything over the limit i would be charged at the 40% tax payer limit i believe. But the gain isn't counted as a gross earning for that year.

SS wage £40k

Basic rate limit £50,270

Property capital gain £50k

Then £10270 charged at basic rate and the remaining £39,730 charged at higher rate.

This is how I understand it anyway

Albermarle

• The money i sacrifice will go into my pension with no tax taken off and a relief in NI. The max i can add is £60k as this figure is lower than my annual earnings.(also need to take into account contributions made already this year)

The £60K Annual Allowance also includes the employer contributions.

If you did not add £60K in the previous three tax years, you can use any unused allowance. However seperately you personally can not add more than your gross taxable income in any one tax year.

Also with salary sacrifice you can not reduce your salary to below minimum wage levels.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82091846#Comment_82091846

Yes. That is my understanding too. Don't forget the £3k annual allowance for CGT. But maybe you already deducted that to get to the £50k.

And you may have some other taxable income as well as your wages