Pension Q

[ukwill]

What are your investment options if you're close to your pension lifetime allowance and have a large lump sum after selling your primary residence and downsizing?

[Mr Pointy]

What are your aims for the money? Do you need it to put on 7% a year or are you happy with 3%. Are you trying to minimse IHT?

You can stick it into a GIA account (that's two accounts, I know) & invest it into the same funds as your pension & ISA. Recycle £12,500 of gains each year to minimise CGT. Do you need anything more complex than that?

[ukwill]

I suppose I'm investigating what is the most tax efficient way to deal with a large lump sum, outside of a pension.

[ellroy]

Age? Income? Risk? Timescale? Endgame?

VCT? EIS? Offshore if you’ve maxed ISA and CGT?

Far too many questions before I’d offer a professional opinion.

[i4got]

If you have a wife with spare pension capacity that's worth looking at. You may be able to backdate and use past years allowance also.

[ukwill]

Apologies for the lack of details, I was trying to keep it generic/high level. I’ll procure some prof.advice nearer the time.

[leef44]

Yes, it's a bit like going on to a car forum and saying, I'm looking for a car that's fast, what would you recommend?

[ukwill]

leef44 said:

Yes, it's a bit like going on to a car forum and saying, I'm looking for a car that's fast, what would you recommend?

It's really not. There are myriad tax mitigation strategies - I was hoping that some might chip in with their own. I've already considered a number of the more obvious ones, but not being a tax specialist, I was wondering about some of the more esoteric ones. I realise however that this is best answered by a prof - hence my response.

Ps. If you think your example is somewhat vague, you definitely do not want to read the Car Buying subforum.

[red_slr]

MMm, as you are close to LTA then I think that might be a bit of an issue.

Are you not 1 for 1ing the primary residence?

[leef44]

i4got said:

If you have a wife with spare pension capacity that's worth looking at. You may be able to backdate and use past years allowance also.

I would go with this one.

Transfer some funds to wife account, use up her pension allowance.
Set up 50k each in NSandI Premium bond accounts
Use up 20k each ISA then another 20k come next tax year.
The rest you could invest in GIA where you still have 12.5k annual gains allowance each