Best UK savings options?

[Deep Blue]

I declare income and suffer the tax (grudgingly) in the year it is paid. This seems consistent with other things that have multi year accumulation/vesting periods like restricted stock units from my employer.

[Deep Blue]

Skipton looks quite interesting, decent rates for both "notice" savings and fixed time fixed rate bonds.

Looks like only GBP50k is insured though. Lloyds is 85k through the UK's FSCS. I am happy to have more in Lloyds as I think it's too big to fail (as evidenced in the GFC) but I might worry a little bit about having more than 50k in the offshore entity of Skipton, as it isn't systemically important to the UK or Guernsey in the same way Lloyds is.

[Deep Blue]

I declare income and suffer the tax (grudgingly) in the year it is paid. This seems consistent with other things that have multi year accumulation/vesting periods like restricted stock units from my employer.

Sorry!!! This is wrong. I found the interest is paid annually, even for the fixed two year bonds. So, need to declare every year.

Just going through this joyous process right not.

[northSaver]

Thanks. Yeah, I think I read somewhere that interest must be declared when paid - usually annually - even if you can't access it.

I'm also going through the joyous process right now. Quite a lot of foreign interest and dividend income last year. Good for Japan Inc. as well as me

Be thankful you don't trade crypto. Reporting that is fiddly to say the least.

[mc_spanner]

Where the fund is different to buying gilts directly is that there is reinvestment risk - when they use the proceeds of the maturing gilt to buy the next gilt in the series/index. If you own the gilts directly you control this decision, whereas I don't.

For me, there is one huge advantage of buying a tracker fund - more advantageous tax treatment. I pick the accumulation units (not the income units) which means all income is reinvested in the fund without coming to me first. So, I don't have to pay Japanese tax on this each year.

Of course, there will be a capital gains tax liability when I come to sell this, but I have plans to deal with this too.

I'm also looking at this option. I'm interested to learn about your plans to deal with capital gains tax liability at the time of sale.

I've been told that I could establish tax residency in a favorable tax jurisdiction (say UAE or Bahamas) at the time when I sell. I guess that would involve living in the jurisdiction for >183 days, which might require a special visa? Would that also mean giving up permanent residence in Japan?

[Deep Blue]

If you have permanent residency in Japan, you might be liable for exit tax which scuppers plans to avoid CGT. Worth checking.