Background: I'm 55 years old (entrepreneur, likes freedom), partner Hayley (47, student, cancer), Eldest Tara (23, returning student), Mariel (19, university) and Leo (9, school, autistic).
Ignoring Cantab Research shares, state of play is at https://docs.google.com/spreadsheets/d/1yg8347qqqGychpDa_JtymO48cDsa55KsGpvpCFhfzb8/edit#gid=0
If £682k (£800k, £2m) secondaries, about £53k (£76k, £196k) tax due under CGT/entrepreneurs relief. Have 3 years to invest under EIS and then claim back CGT (can deduct £12,000 for the CGT allowance and 10% of about £24k for NowTranscribe losses and about £7k for other losses. Total £15k).
Over 1.5 (2, 2) years (19/20 and 20/21) put about £176 (£186k, £480k) into EIS, that is £120k (£93k, £240k) a year. Claim all against tax and use rollover so that tax is only on (£1400k) or (£136k) tax which is then absorbed buy EIS shares - no overall tax. Want all tax certificates by end January 2021 deadline, so finalise EIS in July 2020 to give 6 months for certs. Have £69k commited as of mid-sept 2019, so about another £50k in 10 months - this is a normal rate of progress.
40% income and child benefit kicks in at £50k, capital gains tax is 20%. Tax minimisation says £50k income.
Want to make use of £12k CGT - so need about £300k there.
Want to use up AC losses, so about £200k there, £16k income a year that won't be taxed.
Immediatatly £1m into momentum tracker, £1m into P2P (8% return) - pull out from P2P to fund EIS and to pay tax in Jan 2021. Leave 500k in P2P along with existing 100k, that's basic income of 48k. Reduce if still working.
Stable state - say in 2 years time:
About £1.5m is asccessible - for new company, land purchase, etc.
Distribute over 4 asset classes, world stocks, P2P, VCT/EIS and property. House is ~550k so take out and aim for ~600k in the others.
Cantab Research strategy:
What if £4m from Speechmatics?