Tax man caught up with me....
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Upwind
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I have a savings pot of £350k and have managed to avoid tax investigation to date. Unfortunately, they have caught up with me and although I have about £180k in ISA and premium bonds, they have collared me for a bit in tax..... So, how do I escape the tax burden guys....? I have the ability to take out another ISA in April and can up my premium bonds to £50k also, so can effectively take my taxable amount down to about £150-160k, but what should I do next? I could give my dad £20 to invest in ISA for me, or look to invest more in peer to peer stuff - any ideas?
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So, how do I escape the tax burden guys....?
Pension contributions
annual ISA allowance
Unwrapped investments using dividend allowance use and annual CGT allowance use.
Those are the usual suspects with that sort of figure.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I assume you're talking about tax on interest? And that interest from your non-ISA/non Premium Bond savings take you over the threshold for tax exemption?
With interest rates being what they are it can't be a huge tax liability? An average of, say, 2% (and that's surely optimistic) on 150k would only be £3k. If a basic tax-payer that would be tax on £2k (over the 1k allowance) at 20% which would be £400, reducing effective (net) interest to 1.73%, which is still good. Less of course if a higher rate payer. Is that really such a burden?
At first sight there's no much you can do - peer to peer is also taxable isn't it?
But, frankly, if you've 350k saved in cash perhaps you should do something more imaginative with it than just keeping it in cash. Investments? Pension?0 -
Both of you are spot on guys and I'm being stung for just under £600 - which I ain't going to loose sleep over - I just hate giving the taxman any of my hard earnt. is it a good idea to get my old man to invest for me, or are they likely to smell a rat now? He would be OK doing it as he doesn't like ISA investments and he isn't getting stung on his tax...0
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Both of you are spot on guys and I'm being stung for just under £600 - which I ain't going to loose sleep over - I just hate giving the taxman any of my hard earnt. is it a good idea to get my old man to invest for me, or are they likely to smell a rat now? He would be OK doing it as he doesn't like ISA investments and he isn't getting stung on his tax...
If you are suggesting putting your cash in his name to save a pittance you would be bonkers, unless you really want to put it at risk of inheritance tax, or being used for care costs.0 -
Keep_pedalling wrote: »If you are suggesting putting your cash in his name to save a pittance you would be bonkers, unless you really want to put it at risk of inheritance tax, or being used for care costs.
Why bonkers? I was thinking of putting it in his name and skimming the interest just to take it out of taxman view. He hasn't got a fortune behind him, so I doubt inheritance tax would figure...0 -
Venture Capital Trusts
Suitable for around 1% of investors. Bit early to introduce those without more information to go on.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Both of you are spot on guys and I'm being stung for just under £600 - which I ain't going to loose sleep over - I just hate giving the taxman any of my hard earnt. is it a good idea to get my old man to invest for me, or are they likely to smell a rat now? He would be OK doing it as he doesn't like ISA investments and he isn't getting stung on his tax...
Alternatively you could consider that £600 is a good contribution to the services you receive from the state. Make plans to legally reduce burden in future but passing money to other people is likely to cause more issues than paying a few quid tax on interest.Remember the saying: if it looks too good to be true it almost certainly is.0
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