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Capital Gains allowance is about to be slashed - if that matters to you.
More worth reminding is that you can, even if you don't earn anything, put some money into a new (or old) SIPP and gain dosh from HMG. Up to age 75.
So you can put in £2880, and HMG makes it £3600. (+ £720)
I think you have to keep it there for a year minimum.
When you take it out, you get 20% tax free, and pay tax on the rest at your marginal rate. So if you have the headroom, you keep the whole £720 and get 3600 back
Not bad for a phone call.
If you pay tax at 20%, you get back 3600 x 0.2 (the tax free bit=720) + ( .8 x .8 x 3600 =2304) = 3024 so you gain 3024 - 2880 = £144 for your phone call.
JohnD will be all over that if I got the sums/details wrong so I CBA to check my mental arithmetic.
Oh you can invest the 3600 in something if you want, or just leave it as cash. Someone like Hargreaves Lansdowne will do that for you.
More worth reminding is that you can, even if you don't earn anything, put some money into a new (or old) SIPP and gain dosh from HMG. Up to age 75.
So you can put in £2880, and HMG makes it £3600. (+ £720)
I think you have to keep it there for a year minimum.
When you take it out, you get 20% tax free, and pay tax on the rest at your marginal rate. So if you have the headroom, you keep the whole £720 and get 3600 back
Not bad for a phone call.
If you pay tax at 20%, you get back 3600 x 0.2 (the tax free bit=720) + ( .8 x .8 x 3600 =2304) = 3024 so you gain 3024 - 2880 = £144 for your phone call.
JohnD will be all over that if I got the sums/details wrong so I CBA to check my mental arithmetic.
Oh you can invest the 3600 in something if you want, or just leave it as cash. Someone like Hargreaves Lansdowne will do that for you.
