money help

andyparf_2

please can someone help with some ideas

i have approxamatly 100,000 total with 15,000 in a isa and 5000 in shares i would like to put the other 80,000 into a account but i have had this money given to me by my grandfather who died 8 years ago i did not know about this untill i was told by my grandmother recently

i would like to make this money aprear without having to pay a quater of it back in tax is there anything i can do i do not want lots of questions to be asked about where it has come from the only other thing i can do

offshre savings accounts or can i put it through inheritance even though this time periode

tom188

Save or invest?

Tax free vehicles to consider - Cash ISA, Equity ISA, pension?

If not you generally have to pay tax. If you are a basic rate tax payer you pay 10% on income from shares/unit trusts and have nothing else to pay. If you are a higher rate tax payer you need to pay the difference c20%.

Offshore accounts do not mean you dont have to pay tax. It has just not be traditionally paid at source - you still have to declare the income and moves are afoot to make you pay withholding tax unless you are declaring it.

or can i put it through inheritance even though this time periode

Sorry youve lost me

andyparf_2

what i am saying is have gained this money and nobody knows about it, i currently have the 80,000 in cash

i want to legitamatly make this money come out without lots of questions of where it has come from

you can imagine if i walked into the bank with lots of notes and everyone started asking questions

tom188

I see you mean used 20s?

Do you have a paper trail of where it came from? Was it in your grandfathers will? Did it go through probate? Has any tax due on the money through the estate been settled? If not how can you prove the money is yours?

Money laundering regulations are strict for such large amounts. I suggest legal advice from whichever solicitor dealt with your grandfathers estate is the best option.

tom188

If the cash was left out of the estate of your grandfather this could be seen as tax evasion so tread carefully. I am not sure this is the right place for this to be discussed.

andyparf_2

i will have to ask my accountant and see what he recomends i know how easily this can bee seen as tax evasion or whatever and how it could look ie money laundering etc

it is a wirerd situation to be in, but i would not realy like the state to take 20,000 out of me i would rather leave it as cash

tom188

You will only pay tax on the interest not on the capital. However if this amount was above your grandfather's estates tax free allowance and still in the estate (ie not declared at probate) you will be liable for 40% inheritance tax. If the money has not been declared it will still belong to your grandfathers estate, and not to you, even if it was set aside for you. Hence legal advice is necessary.

Sillychuckie

andyparf wrote:

i have had this money given to me by my grandfather who died 8 years ago i did not know about this untill i was told by my grandmother recently

Rather harsh for her to keep his death a secret all those years...

EDIT: oh wait... now i see what you mean

tyllwyd

andyparf wrote:

i will have to ask my accountant and see what he recomends i know how easily this can bee seen as tax evasion or whatever and how it could look ie money laundering etc

Umm - if it turns out that the money should have been part of his estate and tax should have been paid but wasn't, then surely it is tax evasion?

I don't know if accountants have professional obligations to report tax evasion/money laundering if they know (or suspect) it has happened - but if you make someone aware of this money on a professional basis you should be prepared that they may have no choice about what to do next if otherwise they could be implicated in something illegal.

andyparf_2

i dont know what accountants you deal with but everyone ive seen are the bentest people about

the usually know more loopholes than anyone

RayWolfe

Knowing the law does not make an accountant bent. Any more than have a large stash of cash makes the holder necessaraly bent.