Savings for non-tax payer

TCA

TCA wrote: »

Apologies in advance for tagging on a new question but it probably doesn't warrant a fresh thread. Anybody got any suggestions for the following?:

Non-UK resident, non UK tax payer (mid 40's, British citizen) with UK savings earning gross interest just under the current personal allowance. Soon to be gifted a sum of around £50,000 and wondering how best to save this in the UK.

Income from this new cash is not required and would be looking to earn 5%+ p.a. in line with current long term fixed rate savings accounts (5 years). Money could be left without access for this kind of period. New ISA contributions not permitted as non-UK resident, no tax relief available in new country of residence and no investment opportunities there either, so safe UK investment/savings desired.

Given the threshold for taxable income would be breached, are they any better alternatives to generate this required rate of return with little or no risk?

I realise that 5% interest on this next £50k of savings income would probably fall into the 10% bracket (as no non-savings UK income) but annual self-assessment forms would rather be avoided having just come out of the system. So far sake of argument let's say further cash would follow in subsequent years which would definitely generate income in the 20% tax bracket.

Any tips? Thanks.

Would equity funds (outside of an ISA wrapper) be a potential solution? Something "safe-ish" like government/corporate bonds perhaps? Am I right in thinking that this would fall under the realm of capital gains tax, so wouldn't affect my income tax position?