If you have a Cash ISA, do you need to have it in the same place as a Stocks and Shares/Help to Buy ISA?
The simple answer is no. As long as you stay within the ISA allowances within the tax year you are fine to have as many ISA accounts as you want.
The Help to Buy ISA is a little more complex when it comes to funding but in basic terms you can only have one Help to Buy ISA and if you have taken out a Cash ISA or Stocks and Shares ISA in the tax year, you will have to transfer £1,200 from that ISA to open your Help to Buy ISAs.
Read more details about the Help to Buy ISAs and beware the small print. It is a little sneaky.
To make things even more complex, the Government is launching a Lifetime ISA from April 2017. I will write more about this nearer the time.
Can I take money out of my pension once I put it in?
Again, the simple answer is no, not until you are probably mid 50s to say the least. This is the reason for a pension, so that you cannot touch it until you near retirement.
There are quite a few interesting investment options through decent sized pension pots such as commercial property and also potentially loanbacks to companies. They can be fairly powerful over the long term, but don’t forget you can’t access the capital until later on.
I often discuss pension contributions with business owners as one of the most efficient ways to release cash from a business into a personal environment. If the business can afford it, then it’s something to consider.
Should I invest in an EIS (Enterprise Investment Scheme)?
EIS is a scheme that encourages private investment in smaller companies.
The benefits in brief are:
30% income tax relief on investment (need to hold for at least 3 years)
No CGT, IHT or Income tax on the investment
Can defer previous Capital Gains
Any losses can be set against income for tax purposes - loss relief
There are quite a few conditions and exclusions that you need to be aware of and Crowdcube did a pretty good summary.
If you have the cash at disposal and a large income tax liability or looking for a tax efficient way to invest in business opportunities then EIS can be quite attractive particularly if you understand the risks of the business involved.