Tax free investments

[rootsnall]

There are NS & I government products ( http://www.nsandi.com/products/ilsc/index.jsp ). I've got a bit in the index linked one, its linked to Retail Prices Index (RPI) which means your tax free rate is approaching 5% at the moment. If you are a higher rate taxpayer thats effectively 7% or so.

[lukemg]

Tracker mortgage (presuming you have a mortgage) essentially you are getting the mortgage rate on any money in your account (it's tax free because you get the benefit of reduced payments/term rather than cash in your hand).
SIPP - yeah I know it's a pension, but you control it.
How much are we talking about ? - I had 60k stashed one time, blew the lot on a Porsche - not my smartest financial move !

[DimPrawn]

Tracker mortgage (presuming you have a mortgage) essentially you are getting the mortgage rate on any money in your account (it's tax free because you get the benefit of reduced payments/term rather than cash in your hand).
SIPP - yeah I know it's a pension, but you control it.
How much are we talking about ? - I had 60k stashed one time, blew the lot on a Porsche - not my smartest financial move !

Have no mortgage (all paid off).

Have filled all ISA allowances and Premium Bonds for myself and wife.

Feck, it's no good I'm just going to have to spend some money on having fun.

[rootsnall]

Tracker mortgage (presuming you have a mortgage) essentially you are getting the mortgage rate on any money in your account (it's tax free because you get the benefit of reduced payments/term rather than cash in your hand).
SIPP - yeah I know it's a pension, but you control it.
How much are we talking about ? - I had 60k stashed one time, blew the lot on a Porsche - not my smartest financial move !

I think you mean an 'offset' mortgage, it could also be a 'tracker' ( ie. tracks the BoE interest rate ).

What did you get for the Porche when you got shut ?

[Lucifer Box]

You may as well put your £25/month allowable into a Friendly Society scheme. I know it's not much but, as you say, there's no point in letting Gordo tax it instead.

[milanbenes]

'Have no mortgage (all paid off).

Have filled all ISA allowances and Premium Bonds for myself and wife.

Feck, it's no good I'm just going to have to spend some money on having fun.',


obviously your house is too small !

Milan.

[Spike]

Share dividends.
Friendly Society savings plans.
In effect, paying off debts is tax-free.

Hi, can you (or someone else) explain what mean when you say paying off debts is tax free ?

[Euro-commuter]

Hi, can you (or someone else) explain what mean when you say paying off debts is tax free ?

I mean that if you don't pay off the debt, then you will have to service it with interest payments that you make with taxed money; or to put it the other way, putting money into paying off debt is equivalent to investing the money at that rate of interest net of tax.

So if your mortgage rate is 5%, paying it off is equivalent to a 5% "tax-free" return on the money.

This is in effect comparing it to an ISA-like investment, where the interest is tax-free but you do have to come up with after-tax capital to make the investment. It is in effect tax-free in the same sense as an ISA is.