Best low risk options for house sale proceeds over three years

[Sharkle]

We need to do something with a large sum (from a house sale) for about 3-4 years. Don’t want to take any significant risk as we’ll need the money to buy another house at the end of that period. (Buying now doesn’t work for complicated reasons.)

The best option I’ve found is short dated low coupon gilts. These beat cash for us as we’d pay higher rate on any interest but the gain on the gilts is CGT free. All wrappers already used.

Any other options you would consider?

I came on to say Gilts. Buy below par and you’re good to go. If you find a deposit based structured product there is still counterparty risk - don’t do it!

Reviving this thread - what did you do OP - finding myself in the same boat - came across gilts - I only want it put away for a year.

Make sure you only buy those to the redemption date that you need.

yes - thank you :)

I bought gilts 😎

If you are holding them outside a tax wrapper then the ones to choose are low coupon gilts. This means that you receive most of the return as a capital gain, which is tax free, and only the coupon as interest.

https://giltsyield.com/tax/ Is a very helpful site.

Great thanks for that :)