son in Australia permanantly - advice please on UK savings

sunflowersuffolk

Sorry have posted this on 2 boards as not sure which is best.

My son is now a permanant resident in Australia and has about £8000 in a UK bank account getting no interest. He doesn't really want to over it out there at present. He is no longer a UK tax payer. He has a permanant job there.

Please can anyone give me advice on how best he can keep the cash in UK and still get some return on it?

If necessary we could do an ISA in my name (I have none myself). I assume that wouldn't affect my tax situation as ISAs tax free. He could move it to my account and I could buy the ISA.

He wants possible access to it after 2 years, but may be will keep it here longer. He would move it across in a lump sum and wouldn't add to it.

I have a Co op account and saw the Brittania 2 year ISA at 2.6% for co op customers - what do you think?

Is the ISA best for him or would a long term savings account be better as doesn't pay tax?

Please excuse my ignorance on this, and thanks for any advice.

Vortigern

If the money goes in your account, then it becomes your money, not his. I guess he trusts you to return it to him, but:

If you should die before returning the money, it will form part of your estate and be distributed as directed in your will.

If you should need to claim means tested benefits it will count as your money and may reduce the amount you can claim.

innovate

I have answered this post on the ISA board

sabretoothtigger

What bills does he have in Sterling. Im inclined to think he should move his money where its most needed, or at least most of it.

Watch the exchange rates, sterling is not so bad at the moment I think

sunflowersuffolk

Thanks everyone, he will probably move it now as you suggest. Does anyone know most favoutrable way to do this? Thanks for your help

Archi_Bald

best deals are with currency transfer firms. There's many of them, and a few comparison sites that let you find the best one at any one point in time for your then requirements

http://www.fxcompared.com/
http://www.money.co.uk/money-transfers.htm
http://www.mycurrencytransfer.com/

just a few of them

sunflowersuffolk

thanks very much

RetiredInThailand

sunflowersuffolk wrote: »

Please can anyone give me advice on how best he can keep the cash in UK and still get some return on it?

He can deposit the money with the likes of http://www.pnbint.com/FD.aspx where it will earn up to 2.75% on a 5-year TD, paid gross if he fills in form R105. I dont think I would want to take out a 5-year TD at the moment though.

If he can "borrow" your UK address and if he has no other UK income taking him over the personal allowance then he could deposit it with any UK bank or building society at net rates and claim the 20% tax back via form R43.

His interest earned here should be declared in Australia.