Where to save £14,000

shopaholicjules

Hi
My friend has been given £14,000 to look after for her mum after selling her house. She will be able to keep any interest that is made.
Any ideas of the best place for the best return she should put it.
I know you can only put £3000 in an ISA but should she put some of it in one?
Julia

KTF

I would use up your ISA allowance, then open a monthly saver and put the max on that each month then put the remainder in a high interest savings account.

taylornj

Your friend may want to check before she does anything more, HMRC may get interested here. There are limits on gifts etc.

May be better asking this as a tax question first. The worst thing is to get some interest and then be faced with a big tax bill.

Opening an ISA under these conditions is a bad idea. It is best to keep the money received while acting on her mum behalf completely separate in a separate account, and well documented.

The other tax issue depends on if the mum is in the high rate tax band, then it could be seen as a tax avoidance scheme as the mum would normaly have to pay extra tax on the interest.

You may get some better hints how to handle this correctly else where, and you may need to give more details.