£55k - What to do after ISA?

[Adamxck]

I'm opening an ISA with Cavendish and putting £15,240 into a Vanguard Lifestrategy fund. Then after the tax year, I'm putting in a further £20k (as I understand the allowance increases) which leaves me with £19,760.

What's the next best thing to do? Something with a SIPP? Overpay the ISA and pay the tax on it? (I assume you pay tax on the extra, rather than the whole lot?) Or would it be better to open another fund, outside of the ISA then transfer that money in come april 2018 as part of that yearly allowance?

I'm after a passive/lazy option, please, and thank you.

[STURBO]

You could just put it into the same Vanguard fund, but outside the ISA wrapper. Does your ISA provider have a dealing acount?

You'd then potentially have capital gains tax liability, but there is a approx 11k tax free allowance for that so if that's all you have it won't be an issue.

[Ginge R]

Adamxck said:

I'm opening an ISA with Cavendish and putting £15,240 into a Vanguard Lifestrategy fund. Then after the tax year, I'm putting in a further £20k (as I understand the allowance increases) which leaves me with £19,760.

What's the next best thing to do? Something with a SIPP? Overpay the ISA and pay the tax on it? (I assume you pay tax on the extra, rather than the whole lot?) Or would it be better to open another fund, outside of the ISA then transfer that money in come april 2018 as part of that yearly allowance?

I'm after a passive/lazy option, please, and thank you.

Depends on your need. Do you want an income producer or (especially post budget) one that will allow you to chip away at your capital gains instead. Or one to simply grow over the long term?