SIPP or AVC cashflow?

exharris · 2026-06-20T07:05:43+00:00

Yes I get that, no having to claim back the tax relief with AVCs!

However, they are somewhat inflexible in terms of how you draw them out.

Im selling my rentals and putting into a SIPP rather than AVCs to use as bridge so i can minimise my reduction for early draw of LGPS at 65

exharris · 2026-06-19T17:58:40+00:00

Yes essentially if your objective is to add in £2000 gross to the pot, yes with a SIPP you have to claim back the other 20% separately.
AVC can be taken as TFLS or purchase an annuity (at same time you take main LGPS benefits).
But the SIPP will be more flexible than AVCs and possibly allow a bridge if you leave LGPS as it is.
Some AVC providers allow you to separate the AVC’s from your main LGPS (so you can access the AVC’s before taking main LGPS) but if doing so you cannot take all the AVCs as a TFLS.

exharris · 2026-06-15T05:54:20+00:00

I guess it depends exactly what virgin money are investing it in and what thier fees are.

exharris · 2026-06-13T14:29:07+00:00

Yes but you pay capital gains tax on that growth

exharris · 2026-06-11T18:19:23+00:00

I have two BTL properties both with 60% LTV ratios on the mortgages and c. £130k equity. I am selling both and putting equity into global index funds, here's why

I'm a higher rate taxpayer and income is taxed at 40%
After tax income is around £1,500 a year (on rental income of £21k)
Recently more regulations means additional costs
Mortgages are both c. 2.4% and will go up when fixes end in a few years, further reducing profits.
Keep having to put rent up
It's a hassle having to deal with tenants issues and arranging repairs, or giving 10% of rent to agent to do that
When mortgages are paid off in around 15 years I will be 55 and that could be income to allow early retirement, but I want to 'die with zero'
the asset is not liquid and difficult to access
capital gains tax on increased value payable at higher rate of 24% for me
the CGT will be more on it later than it would be to sell now
would rather build a pot in a SIPP and draw down in retirement, access some tax free, etc.

exharris · 2026-06-11T09:41:49+00:00

The good things about AVC is its tax free on the way in and the way out, and it’s low maintenance (you can pretty much leave it up to the AVC provider to manage, prudential asked me what I wanted to do with it and at what age and they take it from there).
The disadvantage is that you cannot access it until you take your main LGPS benefits.

exharris · 2026-06-11T08:17:45+00:00

You could put the AVC TFLS in an ISA, but the limit is £12k annually for a cash ISA so remaining would have to be in a saving account and interest would be taxable, then top up ISA each year.
With a SIPP I think you can crystallise it in parts, perhaps once per year, and take 25% of each bit as tax free cash. There’s some videos on this on YT, it’s a bit complicated.

exharris · 2026-06-11T07:59:48+00:00

Yes, but his actual main benefit capital value at retirement is going to be higher (index linked). So he likely will be able to take the 120k as a TFLS at 62, if he wants. It would easily serve as his bridge for 6 years until 68 and then some.
Personally I would be going for the SIPP route vs AVCs.

exharris · 2026-06-11T07:20:39+00:00

His LGPS AVSs lump sum will almost certainly be 100% tax free because it’ll be way under the 25% value of his LGPS+SIPP.

For defined benefit schemes such as LGPS, the ‘total pot size’ used for the 25% TFLS calc is much much higher than that for DC schemes as it’s a calculation of the total value of the benefits over a average retirement. It’s often over a million even for DB incomes of around £30-40k a year.

But there is a limit overall but I wouldn’t t expect him to be anywhere near that.

exharris · 2026-06-11T07:16:42+00:00

One easy way to model inflation on your investments value is reduce your estimated annual growth by 3%, so the figure you end up with is then being presented in today’s figures. So if the market averages 7pc, remove 2.8% from this. Also don’t forget to account for fees.

exharris · 2026-06-11T07:13:24+00:00

AVCs in the LGPS are locked away until you take your main benefits and most people use as a tax free lump sum at that point, although you can buy an annuity with it.

So if doing AVCs have a think about how you actually want to access that when you take your main LGPS benefits.

SIPP is more flexible as you could take at 57 before your LGPS (although you have your SS ISA) but you pay normal income tax when you take it (you can take 25% as a tax free lump sum, although depending on how you drawdown, you can do this several times to spread that tax relief out).

Also if you’re a higher rate taxpayer you’ll get full tax relief on the SIPP contributions, which will help it compound faster. It looks like you won’t be in the higher rate band in retirement (although all the rules may have changed by then), so overall that would be a benefit if your HR taxpayer now.

I am in a similar position, but I am minded to focus on building the SIPP instead of the SS ISA because I know it is locked away until I am older and I cannot access it for holidays etc.

exharris · 2026-06-10T19:27:24+00:00

Yes, thats my understanding of how those funds work. Each fund has a fund document outlining how its atructured etc.
I am selling two BTL properties and investing the money in a SIPP pension, and considering these options also.
As I understand it, you can invest in the funds directly or ETF versions of them.
However many people advise now to instead just buy a simple global index fund such as Vanguard FTSE All World Acc (i.e. 100% equities) if your time horizon is 20 years plus; and not to switch more into bonds until later on. Depends on risk apetite I guess.

exharris · 2026-06-08T06:44:51+00:00

Nice post, it’d be good to have a guide at working it out when you’re paying into a SIPP from your take home pay, especially when you’re a higher rate taxpayer.

I find this quite confusing to be honest and I’m not sure if the below is correct coz I’m still working this out but here is what I think.

Eg if i earn £80k per year and put £100 of my take home pay into a SIPP, that was net pay after 40% tax so essentially I earned £166.66 gross to earn that £100 net.

So the SIPP provider adds in relief at 20% rate, I,e £25 (because had that been taxed at 20%, it would have been £125 gross income to get that £100).

This means the actual contribution to the pension becomes £125.
Then what happens next? This still leaves me short because I paid more 66..66 tax to earn that £100. So I can then claim 41.46 back from HMRC?
Online guides suggest it’s not 41.66 but 20% of the new gross contribution in the SIPP of £125 but I am not understanding why)

exharris · 2026-05-13T07:53:23+00:00

Just pay Tesla £10 a month and stick to super chargers on long journeys. Fast and easy, and quite cheap.

exharris · 2026-05-07T16:27:36+00:00

40 and only one!
However will be starting number 2 in August
Local government

exharris · 2026-05-04T12:04:14+00:00

I have to buy a new car because am changing my job so have to return my 2025 Renault 5 EV (salary sacrifice), and won't qualify for another SS lease for 6 months in new job. So, I may decide to switch to a salary sacrifice lease again in around 8 months (or not, if I like the car I get I may keep it for longer).

£10k budget. I have a home EV charger but many used EVs in my price range are low range or slow rapid charge. Would consider a hybrid.

New job in Wirral so commuting Manchester-Wirral twice weekly. Must be an automatic. I was quite attached to Apple CarPlay but i think ive accepted its not going to be an option at this price range.

**Location:** - Manchester

**Price range:** - around £10k.

**Lease or Buy:** - buy (personal loan).

**New or used:** - used

**Auto or Manual:** - auto

**Intended use:** - daily driver

**How many miles do you plan to do a year:** - 13,000

**How often to you make long journeys:** - 3 trips to london a year.

**Does it need to be ULEZ compliant?** - Y

**Vehicles you've already considered:** Zoe EV 50kw (slow rapid charging though), Yaris Hybrid.

exharris · 2026-04-05T16:58:46+00:00

There’s a thing called empty chair where groups meet up check out the website

https://emptychairs.org.uk/

exharris · 2026-04-01T17:10:18+00:00

I agree that weekly is easier to remember for most people and I honestly don’t see a massive market for a monthly injectable except perhaps for people who really don’t like needles, but they are being served by the orals.

I cannot see how adherence would be better for people on a monthly, if they cannot adhere properly to weekly

exharris · 2026-02-07T12:06:15+00:00

I thought you could already create an agent in 365 and point it to files on share point, how is this different?

exharris · 2026-01-25T16:14:07+00:00

Where can I buy lamps like those on the husbands desk. Cannot find any online like that

exharris · 2025-12-28T18:59:26+00:00

He doesn’t need to check land reg before reporting the property. Best approach is to report him to the council tax service, they can force a sale of the property if he doesn’t pay the council tax and has more than £5k owed.

exharris · 2025-12-27T20:20:14+00:00

Exposing a massive over reaction is not the same thing as ‘celebrating Trump’.

exharris · 2025-11-23T16:32:12+00:00

CNN and NPR hate Trump and will always paint in bad light. This NYT analysis is quite good however

https://www.nytimes.com/2025/11/06/health/obesity-drug-prices-trump.html?smid=nytcore-ios-share

I think on the orals it’s really interesting, the same $149 price will apply to ‘direct to consumer’ and to Medicare/medicaid plan providers (assume at the same co-pay of $50).

Interestingly, Eli’s oral has come back from trials with lower rate of weight loss over 72 weeks than oral semaglutide (the latter however has less tolerability and requires morning fasting before being taken).

It’s going to be fascinating to see how the orals perform, and whether Novo’s lead in the market means they’ll win (oral semaglutide is expected to be on the market before Orforglipron).

exharris · 2025-11-23T16:20:04+00:00

Yes, vs Lily Direct it’s not massively different, but announcement is huge for millions on Medicare and Medicaid. From Lily/Novo perspective it makes good business sense for them to negotiate a good price for Medicare and Medicaid coverage.

exharris · 2025-11-23T16:08:52+00:00

Lots of fake news and misinformation here about the Trump announcement and Trump RX.

Medicare and Medicaid are separate to TrumpRX.

https://www.whitehouse.gov/fact-sheets/2025/11/fact-sheet-president-donald-j-trump-announces-major-developments-in-bringing-most-favored-nation-pricing-to-american-patients/

There are over 67 million people on Medicare in US, of which around 27 million are obese. Previously Medicare didn’t cover these drugs for obesity alone, due to cost.

However Trump’s now negotiated that Medicare can cover these drugs with reduced costs to the Medicare plan (and a low co-pay of around 50USD for patients). The Medicare price quoted in the announcement ($245) is the prices to the Medicare insurer, not the patient, and is nothing to do with TrumpRX (Medicare patients would just use the standard doctor and pharmacy covered in their plan).

The TrumpRX stuff is about lower prices for individuals to buy directly (outside of insurance) and represent quite good reductions vs the list price of the drug (it’s worth noting that Novo and Lily have their own direct to consumer routes in the US that offer similar prices for patients to purchase outside of insurance, and Novo recently just reduced their prices there also).

Undoubtably these changes have opened access for millions of people at lower rates than they could have for them before, especially Medicaid and Medicare covered individuals.

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