What to Tax Shelter?
Posted: April 17th, 2021, 7:45 am
Here is an interesting video from PensionCraft:
https://www.youtube.com/watch?v=2lHVs1XfbZ8
Treasury bond yields are increasing rapidly in the US. The same could happen here. Here is link to the other PensionCraft videos, by the way:
https://www.youtube.com/c/Pensioncraft/videos
(PensionCraft is required viewing if you are lemon and a fool. Even if you are neither, it is worth a look.)
I have just completed a manoeuvrer in which I sold directly held UK shares and bought a FTSE 100 tracker in my ISA and VEVE in my SIPP. I evicted bond holdings to achieve that. Equities in the tax shelters and bonds outside works well for now, while interest rates are very low.
If interest rates went back to 4%, my income tax would sky rocket. My manoeuvrer also has the merit of being reversible. I can sell equities in my ISA and SIPP, and buy bonds. Even so, I would be worth while to keep the FTSE 100 tracker in my ISA. I was considering moving some VFEM into my ISA. That is more problematic. It will take more than two years iSA allowance to do that, and I will have to pay a spread, and potentially pay another spread if the manoeuvrer has to be reversed.
https://www.youtube.com/watch?v=2lHVs1XfbZ8
Treasury bond yields are increasing rapidly in the US. The same could happen here. Here is link to the other PensionCraft videos, by the way:
https://www.youtube.com/c/Pensioncraft/videos
(PensionCraft is required viewing if you are lemon and a fool. Even if you are neither, it is worth a look.)
I have just completed a manoeuvrer in which I sold directly held UK shares and bought a FTSE 100 tracker in my ISA and VEVE in my SIPP. I evicted bond holdings to achieve that. Equities in the tax shelters and bonds outside works well for now, while interest rates are very low.
If interest rates went back to 4%, my income tax would sky rocket. My manoeuvrer also has the merit of being reversible. I can sell equities in my ISA and SIPP, and buy bonds. Even so, I would be worth while to keep the FTSE 100 tracker in my ISA. I was considering moving some VFEM into my ISA. That is more problematic. It will take more than two years iSA allowance to do that, and I will have to pay a spread, and potentially pay another spread if the manoeuvrer has to be reversed.