tax free savings

Where to make the most of your savings

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tax free savings

Postby stooz » Wed Apr 06, 2016 8:36 am

Ok, so now we can earn £1000 tax free on savings as of April 1st 2016 ! so Im assuming I can make a good 20% more profit on my stoozing activities??
Any suggestions for savings accounts, I havent found one that broke even for a while with the fees on the credit cards (beyond what I already have open)

But I think its time to refresh my efforts.

Anyone else seeing a potential from the tax change?

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Re: tax free savings

Postby cashback » Fri Apr 08, 2016 4:53 am

There are definitely opportunities, especially with the TSB Classic Plus loophole:

I'd be willing to accept up to a 2% BT charge if I could stash it at 4.89%. It's the best opportunity for a good while.

I just hope BT fees aren't hiked by 20% or it wipes out the opportunity.

I think Halifax are doing a 0% BT fee free so I'll go for that first off.

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Re: tax free savings

Postby joker » Fri Apr 08, 2016 5:55 am

For me, to break over the 6% level, p2p has to be considered. Please research carefully and remember there is no Fscs there though.

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Re: tax free savings

Postby kempiejon » Fri Apr 08, 2016 8:46 am

I have some in p2p, reg savers HSBC, first direct and hopefully soon M&S. Bank account switching gets a few extra quid too. I also like bank preferential shares but that's not totally risk free.
For those who like p2p there a further chance with shared referrals , rate setter offer £50 referral for new business, a £100 bonus on top of 3.3% on £1k invested for 12 months if a new customer.

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Re: tax free savings

Postby Jamesd » Sat May 07, 2016 6:44 am

P2P is really the place to be to get the higher rates, easy to get 10-12% from places like Ablrate, MoneyThing and perhaps SavingStream, thought that is before possible bad debt, none of which has been significant yet for any of those relatively new providers. Just one default at SavingStream that was fully recovered and none yet for the other two. Secured lending, usually with decent security, though some degree of selectivity is desirable and I don't participate in all offers.

Those three places all have lively secondary markets, particularly MoneyThing and SavingStream. Ablrate is active and offers the opportunity to try to sell at above the purchase price. Capital gains on P2P are typically tax exempt as sales of simple debts in the hands of the original owner of the loan. Not enough deal volume a Ablrate to really exploit this hugely but there are other platforms with more volume that I don't use so can't comment on..

No way I'll get an extra 25% on the stoozing because of the 0% for the first £1,000. With more than £6,500 in interest anticipated on over £50k stoozed it's a nice little boost but that's all. :) VCT is my main 0% tax tool with the bonus of some tax exempt dividends from the VCT purchases. I might get another 10-12k of interest on top of that stoozed money. That by using a cash ISA with the flexible ISA feature of allowing withdrawing and redepositing of past year money within the same tax year. Transfer S&S to that, withdraw, invest in P2P, exit before end of tax year and redeposit to preserve 100k or so of ISA pot size.

The level of interest is high enough for stoozing fees to be insignificant and even life of balance deals can be significantly profitable.

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Re: tax free savings

Postby planteria » Sat May 07, 2016 8:35 am

great post James.

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Re: tax free savings

Postby planteria » Wed Dec 20, 2017 5:45 am

still working the same plan, James?

and still paddling around Poole Harbour, Chris?

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