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Where Taxpayers and Advisers Meet

Tax calculation in retirement

FordCapri
Posts:18
Joined:Wed Aug 06, 2008 3:49 pm
Tax calculation in retirement

Postby FordCapri » Mon Aug 20, 2018 12:30 pm

A general question posed to understand the process - Approx. figures
Will be taking early retirement next year – aged 57 with an approx. income requirement of £30k / year

Current investment status =
General Investment Account (GIA)= £150,000
ISA Account = £100,000
Pension Account (Cash transfer from final salary scheme) = £600,000
Gross income, after expenses from a rental property £14,000

Plan is to pay tax at 20% on the rental income above Personal allowance – approx. £400
Crystallise £40,000 from Pension account - take £10,000 as 25% tax free
Withdraw £10,000 from GIA account - Capital gains allowance
If I transfer a further £20,000 from GIA to ISA account do I pay 20%?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Tax calculation in retirement

Postby AGoodman » Tue Aug 21, 2018 10:34 am

I believe a general investment account (GIA) is just a discretionary investment account that's been blessed by the marketing department.
You would have to sell investments to contribute cash to your ISA so, if they were standing at a gain, you may pay CGT at 10/20%.


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