i am running down to retirement over the next couple of years. however i still have about £200,000 that is not in isas or sipps as i recieved an inheritance I was considering putting some money in to a vct. As i understand it i would get 30% tax relief on this and put some money in to a tax shelter for a few years.
my earnings are now about £25,000. I then pay £20,000 in to a pension and get £5000 added to it as tax relief meaning i put the maximum amount in to my pension. Then we come to income tax. my personal tax allowance is £13,000 meaning i pay income tax on £12,000. thats £2,400.
would i be correct in thinking that if i put £8,000 in to a vct i would get a £2,400 tax reduction and cancel out what i had paid. Or would the tax relief paid in to my sipp be took in to account and i would not be able to claim any more tax relief.
many thanks for any answers
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