£40k - What do with it?

G_M

As suggested
1) If he is a non-tax-payer, ISA doesn't help as he can register for ANY account to pay interest tax-free.
2) If a tax-payer, then look around for a better-paying ISA (see Moneyfacts or the FSA's Moneymadeclear), then get the NEW ISA provider to get the money transferred. Do NOT close the Lloyd's account or you lose the tax-free status
3) If the money is not needed (or a % of it) and inheritance planning is relevant (ie his estate will be over the inheritance tax threshold AND he is concerned by this - he may not be!) then by 'gifting' some of the cash, if he survives 7 years the gift will be free from IT).
4) other higher-risk options are shares, unit trusts etc

Progress

Thanks guys.

Some really useful information here. Much appreciated