- This investor wants to sell his rental properties, and reinvest in funds and shares with the aim of eventually generating an annual income of £45,000
- If he sells the properties over several years he could offset some of the CGT due against his annual allowance for this
- He should invest the money realised from the sales in tax-efficient accounts such as Isas
Reader Portfolio
Dennis
54
Description
Sipp and Isa invested in funds and shares, cash, residential property.
Objectives
Pay off mortgage on main home; dispose of rental properties and invest proceeds; £12,000 a year annual income from investments starting in five years, rising to £45,000 a year within six to 10 years
Portfolio type
Investing for income
Dennis is age 54 and earns £35,000 a year income from buy-to-let properties. His home is worth about £1.3mn and has an interest only mortgage of £308,000. He also owns four buy-to-let properties worth about £1.4mn in total and have interest only mortgages against them of £421,000.