One for the money men.....

Tuearts right boot said:
Due to come into a bit of an inheritance from the sale of my dads house and not sure what I'm going to do with it. Going to chat with my FA but in the meanwhile anyone got any ideas of a savings fund giving reasonable interest but also reasonable accesability......
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If its a big problem I am happy to let it "rest" in my account for a while :-)
 
Tuearts right boot said:
Due to come into a bit of an inheritance from the sale of my dads house and not sure what I'm going to do with it. Going to chat with my FA but in the meanwhile anyone got any ideas of a savings fund giving reasonable interest but also reasonable accesability......
Click to expand...
Whilst you think about what to do about it medium/longterm with the FA:
Max out your premium bonds holding £50k - you can withdraw anytime. maybe 3%+ tax free interest per year.
Check out https://forums.moneysavingexpert.co...-access-acs-ranked-top-of-the-pots-no-chat/p1 for best on access savings rates (gets updated every few days)
If you have trusted partner/kids, give money to them to invest in same ways, but get a document going of any monetary gifts you give away per financial year (if you unfortunately die within 7 years of a gift being given, then they'll be liable for inheritance tax purposes).

Spreading the money to others, (especially premium bonds - 0% tax) lowers your tax savings burden, it's only about £3k these days, before the tax man wants a slice.

Make sure you have sorted your wills and LPA's, as presumably you are now near the 'head of the family' level.
 
Just got my Defined Benefit Pension transferred to the attached with Aegon, (that was a saga I wouldn’t want to go through again) growth from the two funds over the past 5 years has been around an average of 67%, no guarantees but my attitude to risk was 6 out of 10 which provided the criteria for my transfer.
 

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Remember if you are a high rate tax payer you will be taxed on every penny of interest above £500.
Max out ISAs for you and your partner
Max out premium bonds for you and your partner
Be careful with the FSCS £85K guarantee.

Is My Money Safe In The Bank? | FSCS Protection - HSBC UK

Is my money safe in a bank or building society? How safe is my money if I save or invest? We explain how your money can be protected now and in the future.
www.hsbc.co.uk www.hsbc.co.uk
 
Tuearts right boot said:
Due to come into a bit of an inheritance from the sale of my dads house and not sure what I'm going to do with it. Going to chat with my FA but in the meanwhile anyone got any ideas of a savings fund giving reasonable interest but also reasonable accesability......
Click to expand...
Are you an African prince by any chance?
 
We live in a very uncertain world and returns good and bad tend to follow risk.
The less risk you are prepared to take the poorer but safer the return.
The first thing I would do after making sure I had enough in my rainy day fund is pay off all debts including the mortgage.
If you have inherited a substantial sum and are looking at long term gains I would upgrade my house or move.
All gains over the years on your private residence are free of all taxes (special rules for inheritance tax which I won’t go in to here).
Your house is something you can enjoy on a daily basis which looking at a figure on an investment or bank statement doesn’t give you.
Historically investing in your home has out stripped most other investments over time and can be quite quickly converted back in to cash with a down size when you are ready to do so.
 
JASR said:
Whilst you think about what to do about it medium/longterm with the FA:
Max out your premium bonds holding £50k - you can withdraw anytime. maybe 3%+ tax free interest per year.
Check out https://forums.moneysavingexpert.co...-access-acs-ranked-top-of-the-pots-no-chat/p1 for best on access savings rates (gets updated every few days)
If you have trusted partner/kids, give money to them to invest in same ways, but get a document going of any monetary gifts you give away per financial year (if you unfortunately die within 7 years of a gift being given, then they'll be liable for inheritance tax purposes).

Spreading the money to others, (especially premium bonds - 0% tax) lowers your tax savings burden, it's only about £3k these days, before the tax man wants a slice.

Make sure you have sorted your wills and LPA's, as presumably you are now near the 'head of the family' level.
Click to expand...
There’s an allowance for gifts, you can give the amount away without worrying about inheritance tax.
www.gov.uk

How Inheritance Tax works: thresholds, rules and allowances

Inheritance Tax (IHT) is paid when a person's estate is worth more than £325,000 when they die - exemptions, passing on property. Sometimes known as death duties.
www.gov.uk www.gov.uk
 
Tuearts right boot said:
Due to come into a bit of an inheritance from the sale of my dads house and not sure what I'm going to do with it. Going to chat with my FA but in the meanwhile anyone got any ideas of a savings fund giving reasonable interest but also reasonable accesability......
Click to expand...
1000071662.jpg
This lady wants some "sugar"
 
denislawsbackheel said:
Remember if you are a high rate tax payer you will be taxed on every penny of interest above £500.
Max out ISAs for you and your partner
Max out premium bonds for you and your partner
Be careful with the FSCS £85K guarantee.

Is My Money Safe In The Bank? | FSCS Protection - HSBC UK

Is my money safe in a bank or building society? How safe is my money if I save or invest? We explain how your money can be protected now and in the future.
www.hsbc.co.uk www.hsbc.co.uk
Click to expand...
Hi pal you seem to know about this stuff, I’m due to get some back pension paid, now I’ve earned about £2700 interest on it all and they’ve said I will probably need to pay tax on that! I’m on basic tax rate with my pension currently so does this mean I’ll owe them 20% on that? I have other savings which I’ve switched to an ISA so I believe that doesn’t count, am I right in thinking I’m allowed up to £1k before I pay tax on that £2700? I’ve never had enough cash before to even realise you got taxed on your savings, this fucker want tax on everything
 
Blue Maverick said:
Hi pal you seem to know about this stuff, I’m due to get some back pension paid, now I’ve earned about £2700 interest on it all and they’ve said I will probably need to pay tax on that! I’m on basic tax rate with my pension currently so does this mean I’ll owe them 20% on that? I have other savings which I’ve switched to an ISA so I believe that doesn’t count, am I right in thinking I’m allowed up to £1k before I pay tax on that £2700? I’ve never had enough cash before to even realise you got taxed on your savings, this fucker want tax on everything
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Yes, it's £1,000 for basic rate taxpayers and £500 for higher rate. So you'll have to pay 20% tax on £1,700.
 
Prestwich_Blue said:
Yes, it's £1,000 for basic rate taxpayers and £500 for higher rate. So you'll have to pay 20% tax on £1,700.
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I am afraid that is not necessarily true.
What he needs to do is look at his total income position.
Everyone gets a personal allowance of £12570.
Basic rate taxpayers get a personal savings allowance of £1000..
There is then a starting rate allowance of 0% on interest for basic rate taxpayers of up to £5000 So ,depending on other income a calculation needs to be done.
Assuming his pension income ( as he says he has some tax to pay) is say £15000.
He says his interest is £2700.
Knock off £1000 for his Personal Savings Allowance leaving £1700 potentially taxable.
As the total amount of income from pension and savings can be PA £12570 +SA £1000 + staring rate £5000 @ 0% =0 £18570 before any tax is payable on his interest.
So if his only other income is his pension, he can get up to £18570- £2700 = £15870 through his pension and all his savings interest of £2700 will be tax free.
I just hope he doesn’t get lost with the above figures but there is no easier way of explaining it or doing a specific calculation without knowing his gross pension for that tax year.
 
halfmist said:
I am afraid that is not necessarily true.
What he needs to do is look at his total income position.
Everyone gets a personal allowance of £12570.
Basic rate taxpayers get a personal savings allowance of £1000..
There is then a starting rate allowance of 0% on interest for basic rate taxpayers of up to £5000 So ,depending on other income a calculation needs to be done.
Assuming his pension income ( as he says he has some tax to pay) is say £15000.
He says his interest is £2700.
Knock off £1000 for his Personal Savings Allowance leaving £1700 potentially taxable.
As the total amount of income from pension and savings can be PA £12570 +SA £1000 + staring rate £5000 @ 0% =0 £18570 before any tax is payable on his interest.
So if his only other income is his pension, he can get up to £18570- £2700 = £15870 through his pension and all his savings interest of £2700 will be tax free.
I just hope he doesn’t get lost with the above figures but there is no easier way of explaining it or doing a specific calculation without knowing his gross pension for that tax year.
Click to expand...
You're right. I'd assumed he was already using his full personal allowance.
 
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