£100K to invest

applepad

Can I ask a question about the Santander 123 joint account please? Sorry don't mean to hijack. What happens with tax on this one if the wife pays no tax and husband pays tax?

jem16

applepad wrote: »

What happens with tax on this one if the wife pays no tax and husband pays tax?

If it's a joint account then half of the interest would be apportioned to each. Your wife should register for interest to be paid gross.

AndyT678

applepad wrote: »

Can I ask a question about the Santander 123 joint account please? Sorry don't mean to hijack. What happens with tax on this one if the wife pays no tax and husband pays tax?

For tax purposes the tax counts as income. 50% belongs to the wife and is tax free, 50% belongs to the husband and should be taxed at his marginal rate.

Probably better to find the New Thread button in future rather than dredging up old ones though.

atush

She would reclaim 50% of the tax, and he would pay tax on his share?

they could have 2 separate accts instead, and she could arrange to get hers tax free?

AndyT678

Or, if possible, 1 account in the wife's name with all the money in it. All tax free then.

badger09

AndyT678 wrote: »

For tax purposes the tax counts as income.

.......... interest

Bastiat

neelpeel wrote: »

Firstly, sorry to post and run. Been busy over last few days.
Thanks for all the comments though. To answer some questions...

They do use internet, etc but they do not trust internet banking. I've seen this with many older folks and I don't think I'll change their mind.

'Capital that will go up and down with the markets' - I fear they will not be interested in this. So rules out S&S ISAs and the like. They are looking for a safe bet with best interest rates possible, even if it means tying up most of the cash for a while. ...and I know this contradicts their plans of putting into premium bonds - have tried to explain countless times.

I'll look into Santander 123 for £40k. What about the other £60??

The investment universe is not limited to shares and cash. Given their age I would advise them to invest in bonds. The risk is a lot lower than shares, the interest much higher than cash. Assuming they wait until the bonds mature and no default their capital wouldn't be at risk in the way shares are.

bigadaj

Bastiat wrote: »

The investment universe is not limited to shares and cash. Given their age I would advise them to invest in bonds. The risk is a lot lower than shares, the interest much higher than cash. Assuming they wait until the bonds mature and no default their capital wouldn't be at risk in the way shares are.

Though many might say we are still in a bond bubble, with potential for substantial capital losses. The comments you give are far too simplistic and not advice in any useful sense of the word.

Kelouba

Whatever they decide to do with it i would encourage them to spread their risk. Maybe look at investing some in a higher risk investment like currency trading or the stock market.

This is a good site for help and advice in higher risk investment like the stock market. http://uk.advfn.com/

Also found a couple of sites about copying sucessful currency traders. http://www.zulutrade.co.uk/ and http://www.forextradecopier.co.uk/

jimjames

Kelouba wrote: »

Whatever they decide to do with it i would encourage them to spread their risk. Maybe look at investing some in a higher risk investment like currency trading or the stock market.

This is a good site for help and advice in higher risk investment like the stock market. http://uk.advfn.com/

Also found a couple of sites about copying sucessful currency traders. http://www.zulutrade.co.uk/ and http://www.forextradecopier.co.uk/

I certainly wouldn't be recommending anyone in their position to do currency trading, sounds like a recipe for disaster.

In terms of risk the OP needs to realise (and explain to them) that the capital value on any specific day is irrelevant if their main priority is income.

There are income investment trusts, paying up to 4%, that have increased their income payments for well over the last 40 years. That's through stock market crashes and the global financial crisis. The value of the shares may have dropped but they kept paying income so to me that's certainly worth looking at for a portion of the money especially as within an ISA it would be tax free.