RE: Keep topping up11 May 2026 13:18
"pension pot transferred just yet GRRRR!"
I bought inside an ISA. I have a SIPP, but it's not ideal for holding CPH2 if it really goes ballistic.
I fully expect CPH2 to be snatched out of my hand by a take over,
but there is a possible outcome where it pays a generous dividend, when the license fees start flooding in.
Sitting in an ISA, the dividend can be taken with no issue.
Let us say you have £100k worth of CPH2, and it pays £5k dividend a year,
how do you take the money of of a SIPP as income?
The wet dream is, in five years time, my CPH2 shares will be worth £500k, paying out £25k a year.
Coming out of a SIPP, 25% will be tax free, until the £268,275 lump sum allowance runs out.
The rest will be taxed at 40% !
Coming out of an ISA, no tax, no tax filing, no keeping track of how much lump sum allowance I have used.
The HMRC doesn't seem to have a mechanism for keeping track, so it looks like I have to keep meticulous record of the lump sum allowance, because the HMRC will no doubt expect ME to prove that I haven't exceeded it.
Nothing to worry about, if CPH2 just provides ordinary returns, like any other share.