40k Inherited

azz131_2

A family member has pasted away and I have inherited a cheque of 40k (inherits tax has been taken out) and I want to put all of it into a account so I can sit on it for about 5 years but I don’t want a isa or any thing like that I just want to put all of the money in one account .

Points:
1. Less the tax the better
2. More interest over the years I have it in
3. No Tessa’s or ISA’s

Could anybody help me in the problem thanks

Aaron

HGLTsuperstar

Why no ISA. you want less tax as poss, so you're contradicting yourself. And all the money in one place will not earn as much as diversity.

azz131_2

well if i got a isa then i can only put in 3k a year oh my how long would that take me

Louiseuk25

I think I am right in saying you can invest a maximum of £7k at the mo in a cash ISA. Therefore subscribe to an isa for this tax year, leaving 33k to invest elsewhere (am sure someone else will come along to advise).

Wont all be in one account as you stated, but once in there you wont have to do anything apart from watch your money grow!

Louise

azz131_2

ok How many Isa's can one person have ?

Louiseuk25

You can invest £7k per financial year, but you cannot backdate. Therefore you could invest £7k today then another on 6th April 2006, 6th April 2007 etc.

Take a look at this for more info:
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1045408312,40680,

Louise

jonesMUFCforever

I thought the maximum you could put into a Mini cash ISA was £3000 per tax year.
I know you can put £7000 into a Maxi ISA but I didn't think it could all go in as cash indefinetly, something about IR rules stating this type of account was meant to be shares based rather than cash.
You could get round this of course by investing in a 'cash fund' although I'm not sure what 'interest rate' you would get.

dunstonh

you can have one MAXI ISA per tax year. You can have one element of each MINI ISA component per tax year. i.e. £3000 cash, £4000 equity.

Equity ISAs does not need to mean stockmarket if you don't want to go that high on the risk scale.

Unit trusts and investment bonds can both offer different tax advantages depending on your circumstances.

Premium bonds and same other national savings products can offer some tax advantages but also come with some disadvantages.

azz131_2

mm Getting off the point that i was trying to make i just want to know the best deals out there for my 40k..

So i take it. i can only invest in 1 ISA and nothing else with ISA's or can i open say 5 or 6 different ISA's could i do that ?

if not i would only just go to my bank and they take a a hugh tax cut ...yes?

Quote
"Unit trusts and investment bonds can both offer different tax advantages depending on your circumstances."
What the circumstances do i have to be in and also could i invest all of the money in one lump sum?

dunstonh

Every tax year, the slate is wiped clean as far as ISAs are concerned so you start each tax year with a new allowance. So, over 5 years, you could end up with 5 cash ISAs and 5 equity ISAs or 5 MAXI ISAs.

What the circumstances do i have to be in and also could i invest all of the money in one lump sum?

Anyone can invest in these. However, if they are appropriate or not depends on your personal financial situation, risk profile and taxation status and what taxes you are trying to avoid.

cheerfulcat

azz131 wrote:

A family member has pasted away and I have inherited a cheque of 40k (inherits tax has been taken out) and I want to put all of it into a account so I can sit on it for about 5 years but I don’t want a isa or any thing like that I just want to put all of the money in one account .

Points:
1. Less the tax the better
2. More interest over the years I have it in
3. No Tessa’s or ISA’s

Could anybody help me in the problem thanks

Aaron

Hi, Aaron,

You can compare accounts here -

http://www.moneysupermarket.com/savings/