How much are you legally allowed?

Tony_Williams

Sorry I am new to all this. I've been a fan of this site for awhile. I've been lucky in my years to aquire cash and save, I rarely spend and live with my mum.

I was wondering is there a legal limit on bank accounts? For example if you had £50k sitting in a savers card - would that be subject to investergating (BTW that isnt the amount), not by the bank but the law? One example was very sadly my nan gave me money part by part as an inhertange before she died - I was interviewed by Halifax about my money/savings - nothing to worry it was more about opening another account and switching, etc

When I've sold all the rubbish I dont need on eBay I plan on a small bussiness mainly for the experience, learning - I'd talk about this in another thread.

My grandad is old fashioned wont trust banks and plans on giving us his money when he dies how do I prove that it came from him? if he cash in hands it over to us? Would it have to be noted in the will or through the will? - he doesn't want some care place taking over and claiming his cash

Back to my question is thier any issue with having alot of money in an account or even multiple accounts or even big transfers. I know all go through fraud checks for illegal transfers, etc which obviously isnt what I am doing. Currenty I am out of work, I dont claim JSA as I don't think I can as I have over £8k in savings so i just use them to find work or start some bussiness

k12479

Tony_Williams wrote: »

I was wondering is there a legal limit on bank accounts?

No, there isn't.

There is however:
a) The FSCS limit of £85,000. If the bank went bust, this is the limit of the compensation you would be guaranteed.
b) Limits of the particular account, but these tend to be reasonably high (£250k, £1m, £5m, etc.)

Gromitt

You might be interested in this link: http://www.hmrc.gov.uk/inheritancetax/

Or you can just keep it under your mattress and use it as and when as normal spending money, but if you buy something big and pay with a wad of notes, you may be asked to prove where it came from. Same happens if you deposit it in a bank account. You may also be investigated for attempting to avoid paying tax.

Once its in an account, transfers are easy as they know where the money is coming from. Transferring 100K+ is no problem.

Tony_Williams

I know sending £10k+ can be tricky. Like you can't board a plane without declaring you have 10k euros (or £).

Thanks. If I ever ran a small bussiness how much do I need to earn and what scale before I pay tax?

MoneySaverLog

Gromitt wrote: »

Once its in an account, transfers are easy as they know where the money is coming from. Transferring 100K+ is no problem.

Not necessarily so, that kind of amount being transferred out of one bank and into another would get held up with security checks at some banks. Has happened to me on far less within FP transfer limits.

i.e. money left the account, and delayed on it being received in the other account.

Looter

You might also want to consider claiming JSA even if you think you won't receive any money as you will receive NI Credits so there won't be a shortfall in your contributions. Also, it helps when you apply for jobs that require a full checkable history.:)

Ergates

If your grandand has specific people he wants to inherit his money, then it would be best if he filled in a will. It doesn't take long or cost much and can save a lot of hassle.

You can earn up to about 8k pa before you start paying income tax. If you're running a business, then you start doing stuff to reduce your tax burden (e.g. having all the money paid to your business rather then yourself, then paying yourself a wage from your business etc.) but if I'd suggest getting an accountant to help you with that sort of thing (or doing an accountancy course or something).

grizzly1911

Gromitt wrote: »

You might be interested in this link: http://www.hmrc.gov.uk/inheritancetax/



Once its in an account, transfers are easy as they know where the money is coming from. Transferring 100K+ is no problem.

+1 on the HMRC link and depending on the amount, be careful on deliberately trying to avoid care fees, especially if it is imminent or highly likely.

Apart from that you can be gifted anything.

Are there a other potential beneficiaries that may kick up a fuss?

My own bank operates a £10K transfer out limit, other bank accounts I have don't .

YoungBusinessman

My bank allows transfers in and out, aslong as i make them aware before the transaction, upto £25k.

innovate

YoungBusinessman wrote: »

My bank allows transfers in and out, aslong as i make them aware before the transaction, upto £25k.

Worth noting that these sorts of limits are daily limits, usually for Faster Payment transactions. Many banks allow more than £25K now, though it would always be advisable to notify them beforehand if you want to shift more than, say, £10K on any single day. http://www.ukpayments.org.uk/faster_payments_service/value_limits/

As has been mentioned before, there is no legal limit as to how much money you can have in banks. It would be silly to keep more than £85K (incl. allowance for interest) in any single financial institution, though, because of the FSCS limit.