How to invest £50,000 gift

nojunkjaq

My friend is being given £50,000 from the sale of his ex partners house.  She had it built and they lived together for 15 years. He is a carpenter and he built a lot of the interior at the time including the kitchen and bathroom.  Hence the gift. 

Question : will he have to pay Tax on it. What is the maximum that can be put into an account? How can he invest it to not affect pension etc. He is 67.   Could she buy him £50,000 of Premium bonds for example?  Thank you

macman

There is no gift tax in the UK. 
You can put any amount you like into a bank or building society account up to whatever limit they set, but only the 1st £85K per institution is fully covered by the FSCS scheme. So, this is irrelevant for a sum of £50K.
There are no pension implications, any interest will be additional income and subject to income tax, unless held in an ISA
The only implication is that he will then have capital which will make him ineligible for certain state benefits, if this is relevant. 
Yes, he could buy PB's, but these will bring no fixed income, and no interest.
Since we know nothing about his circumstances, aims (growth, income, attitude to risk etc), no-one can advise him how to invest it.
Achieving income much above 1% will require investment int the stock market, which is not risk-free.

Albermarle

As above you are overcomplicating the situation .
She can give him £50K as a gift and he can do what he wants with it , with no tax to pay.