Investment after filling an ISA and high earners

I put my excess funds - after pension contributions and filling up the ISA - into bog standard stocks and shares.

The other tax efficient options come with a very high degree of risk. You might as well just pay the tax in my view. CGT is very low in the UK and comes with a very generous annual allowance.

You could look at making EIS investments and VCTs. Though those involve investing in high risk companies.

There are other 'tax efficient' schemes out there, but many of them are very dodgy. Just look at all the schemes set up to take advantage of film tax credits, most of which collapsed with total loss of capital after HMRC challenged the schemes.

Buying student lets through a company sounds very tax inefficient to me. You'll be paying the higher rate of stamp duty, income tax on the rent and CGT on capital gains.

You could always top up your Premium bond holding to the maximum £50k allowance. Not a high earner unless you're lucky with prizes but income is tax free and you have full govt protection if the stock market takes a sudden unfortunate dive.

Agrav wrote: »

Thanks for the input!

@steampowered - yes, I am interested in exploring student BTL's via a Limited Company but I am unsure whether buying property (no matter the vehicle) would be advisable at the moment.

Any thoughts on buying gold at the moment? I am speculating a property market crash in 2020/2021 and historically, gold performs strongly during crisis'.

Lee

I think once I fill my £40k pension allowance and £20k S&S ISA allowance, CGT free Gold Brittanias would be my next step.

Don't rule out the option to overpay your mortgage (if you have one). Whilst there may be other ways of creating more wealth, many of them are speculative and risky and their success (or failure) cannot be measured in advance. Mortgage overpayments are guaranteed to have a fully-measurable impact. Each overpayment has a cumulative effect for every year that remains on the mortgage and if interest rates rise that effect gets bigger.

And it might just be the Mr Cynical-Picky that I am but it grates when I hear work income referred to as 'earnings'. Being paid for doing a job and actually earning the money are not the same. Some people 'earn' every penny they get paid but some people get paid far more than they 'earn' - I know because once I was one of the latter (briefly). Karma soon finds ways to redress the balance though - as I'm finding out.