What to put in ISA ? Bond or Stock from an overseas pension

[Jacinle]

Hi

Can anyone recommend how we should allocate money into tax saving accounts vs 'normal' accounts?  And how to allocate withdrawal from the accounts to fund expenses during retirement?

Here is my case:
I am planning my move to UK permanently from Hong Kong with my British Citizen Husband and 2 children.

We will be unemployed and hope one of us will find a job within a year or two under the current economic situation.

I am thinking how to operate using ISA and other accounts to fund our spending (if we can't find a job) and longer term retirement investment tax effectively

We have around
1. relocation/2 years expense/emergency: Cash 120K
2. Pension: 300k
3. Stocks: 500k
4. Cash: 300k

Our expense estimates- 50k yearly - 30k + 20k (rent)
This is a bit on the conservative side of financial planning, actually I think we would more likely end up on 40k and might be lean fire on that but we will see.

Note Pension is around 60% equity fund, 40% bond fund, Likely need to liquidate at date around resignation not of my choosing(?) and reinvest, which hopefully the market would not be volatile like March

Jacinle

[vand]

You have £20k per year ISA limit each, and potentially £9k (more than doubled for 2020) in a JISA for each child if you want to put money in their names.

From reading I have done it make the most sense to fill up your tax wrappers with the assets which are likely to generate the most dividend (for dividend tax) and capital appreciation (For CGT), so max out your limits with stocks and bonds each year. Leave the cash outside the wrappers.

Probably won't make a difference in year one, but after a few years then you'll be glad you did it this way.

[daverobev]

Just be aware that you need to hold UK reporting funds/ETFs. There is a list of foreign ones that comply somewhere on the government site - a few of the US Vanguard ETFs are eligible for example.

Income (dividends) from non-reporting funds are treated as income, and IIRC you can't claim capital losses. Not sure what you hold in HK, but it's probably worth reviewing.

[Jacinle]

You have £20k per year ISA limit each, and potentially £9k (more than doubled for 2020) in a JISA for each child if you want to put money in their names.

From reading I have done it make the most sense to fill up your tax wrappers with the assets which are likely to generate the most dividend (for dividend tax) and capital appreciation (For CGT), so max out your limits with stocks and bonds each year. Leave the cash outside the wrappers.

Probably won't make a difference in year one, but after a few years then you'll be glad you did it this way.

I need to then investigate on the returns then.  I hold VT, BND, ISF, SLXX. 

[Jacinle]

Just be aware that you need to hold UK reporting funds/ETFs. There is a list of foreign ones that comply somewhere on the government site - a few of the US Vanguard ETFs are eligible for example.

Income (dividends) from non-reporting funds are treated as income, and IIRC you can't claim capital losses. Not sure what you hold in HK, but it's probably worth reviewing.

We have worked in HK the whole working life, so that's why our holdings are here.
Where can I invest in those UK reporting funds/ETFs? 
Is there a newbie site I can read about how to start that?

Thank you very much!

[daverobev]

Here's the list: https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds

I said what you hold, not why :)

Edit - try this for an overview: https://pjdtax.co.uk/updates/non-reporting-funds/

[Jacinle]

Here's the list: https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds

I said what you hold, not why :)

Edit - try this for an overview: https://pjdtax.co.uk/updates/non-reporting-funds/

Thank you!

Sorry I misread, does mis-read increase with age ? :P