20k implications re tax and what to do with this

GeorgeHowell

DynamiteGirl81 wrote: »

Someone said do not ask a bank for advice I understand this but who do you ask??? Is own research best though ISA rates etc get somewhat confusing for the lay person.

They do, but if you look at websites like Moneysupermarket it makes it a lot easier. Look at more then one site of that nature, look at the qualifications which the good ones draw attention to :- bonuses which disappear, limitations on access to the money etc. Once you get a bit of experience at investigating these sites it begins to click into place. Banks will just point you towards their own (often crappy) products and any IFA is likely to try to get you to go for complicated options where the capital may be at risk, which is the last thing you want. For £20,000 frankly it's not worth getting outside advice which would undoubtedly cost you in some way, albeit hidden and indirect.

Spiggle

Or Cheshire BS instant access ISA at 3.35%. Have a look here.

Hope that helps,
Spigs

oldvicar

GeorgeHowell wrote: »

I would not worry about it. I suspect that their wills could be worded such that if their estate is liable for inheritance tax then any gifts that got caught up in the seven year rule are exempt from it and that the IHT should be paid entirely from the balance of the estate -- but a solicitor would have to advise on that.

Yes don't worry about it. AFAIK the scenario George raises the worry about describes what happens by default. Therefore there is no need for any special wording in wills, and no need specifically to ask a solicitor to advise about tax just now. [Although IF rewriting wills for other reasons a good solicitor will ask about any gifts which have been made].

DynamiteGirl81

Thanks for all the advice, was wondering about decent rates from banks like Santander but worry about the media coverage certain banks are receiving due to the Eurocrisis. There seems to be a major lack of confidence in Spanish Banks at present.

My other half has an old 1990s credit union account, do credit union accounts offer any benefit?

getmore4less

The situations that would end up with you being liable for any IHT on these gifts are so improbable it is not worth even trying to work out what they are.

GeorgeHowell

DynamiteGirl81 wrote: »

Thanks for all the advice, was wondering about decent rates from banks like Santander but worry about the media coverage certain banks are receiving due to the Eurocrisis. There seems to be a major lack of confidence in Spanish Banks at present.

My other half has an old 1990s credit union account, do credit union accounts offer any benefit?

Santander in the UK is fully within the UK FSCS so there is no risk for balances less than £85,000 compared with other UK banks. Their customer service however is considered to be one of the worst.

DynamiteGirl81

Suppose even though cash protected by Government schemes, all this hype in media just now in a way makes you want to avoid these establishments.

Was checking an on line ISA already have with Halifax which is 2.6% gross not used my allowance for this year yet. However see Santander has one at 3.3% AER says 2.8% bonus for 1st 12 months I take it this is better deal. Post Office also seems to have one at 3.01%.

As we live in Northern Ireland do not fancy using a company that have no branches here if we really needed to speak to someone.

atush

If you are with a non standard lender, paying more in interest than you can get with savings, and your ISas are full- I would suggest paying some off your mtg.

you have just over 6% equity in your property and bringing your self up to 10, 15 or even 20% equity will increase your flexibility in any re-mtg you may do in future?

thenudeone

As you mention that your mortgage is moving to SVR of 5.99%, I presume that any tie-ins have ended?

If so, you should consider re-mortgaging to an offset mortgage, so that you'll get an extra 2-3% (£400-600 pa) more interest, which is always tax-free and available when you need it and without having to worry about ISA limits. Offset mortgages are a brilliant product which aren't nearly as widely used as they should be, IMO.

DynamiteGirl81

Reluctant to tie into another mortgage deal right now, may people on here think thats crazy but really hoping to move to a bigger property within the next year or so. Suppose that dependant on selling the one we have maybe easier said than done lol. Thinking maybe that would have options with other lenders if we moved. We would consider paying some money off our current mortgage and have been saving 150-200 a month, so have been discussing further over paying on our mortgage even.