Where to stash 300k

Albermarle

As an aside, I have no assets in my name and don't work so I don't  know if a tax allowance would have anything to do with how I invest.
Sorry for being gormless
And what's a FSCS compensation?

FSCS compensation is a scheme to protect you if the savings provider goes bust.

Savings ( not investment) interest is potentially taxable, however if you are not earning at all, you can have interest up to £18750 pa without paying tax .

The fact you have no assets is not relevant, although would be rather worrying if you had no house, pension or savings of your own !

xylophone

I have no assets in my name

In whose name is the £325,000?

Or do you not regard cash as an asset?

EthicsGradient

If you don't work, and are not receiving any sort of pension, you can get £18,570 of interest before you start paying tax on it (a bit less if you're using the marriage allowance to give your husband a slightly larger allowance, if he does have a salary or pension). That's about 5.7% of £325,000, so you'll be around about that amount if you were to put a quarter each in an instant and 1, 2 and 3 year fixed term accounts. In which case it may be worth putting some (£20k? And maybe you husband too?) in a cash ISA - an instant access cash ISA still tends to do slightly better than premium bonds.

It might not be necessary, though - if the instant access account pays interest monthly, you'll get about half a year of it in this tax year, and by the next, you'll have paid some of it in the home fees, so your interest will be going down a little. It'd take a spreadsheet to work out what would be best, though there may not be much in it.

In any case, it seems likely you'll get over £10,000 in interest next tax year, which would mean you'll have to fill out an HMRC self-assessment form online - don't panic, it'll be fairly easy, you just have to make sure you keep the interest records the banks/building societies send you.

I would also recommend that the 2 and 3 year accounts pay out to you at least yearly - this avoids any argument about whether the tax on them is due each year (which it would be with a yearly interest payment) or only when they finish (which would be a larger lump at the end). Monthly would be fine for them too.

poppy10_2

EthicsGradient said:

If you don't work, and are not receiving any sort of pension, you can get £18,570 of interest before you start paying tax on it (a bit less if you're using the marriage allowance to give your husband a slightly larger allowance, if he does have a salary or pension).

It sounds like the the OP is managing the money for her mother. Her mother hasn't gifted her the proceeds of her house sale (it would be seen as deprivation of assets if she did so). So the OP will need to open the accounts in her mother's name and use her tax allowances. She can't just give half to her husband

EthicsGradient

poppy10_2 said:

EthicsGradient said:

If you don't work, and are not receiving any sort of pension, you can get £18,570 of interest before you start paying tax on it (a bit less if you're using the marriage allowance to give your husband a slightly larger allowance, if he does have a salary or pension).

It sounds like the the OP is managing the money for her mother. Her mother hasn't gifted her the proceeds of her house sale (it would be seen as deprivation of assets if she did so). So the OP will need to open the accounts in her mother's name and use her tax allowances. She can't just give half to her husband

The OP said "To confirm the house was legally mine but the money from the sale of the house is morally mum's."

QrizB

poppy10_2 said:

It sounds like the the OP is managing the money for her mother. Her mother hasn't gifted her the proceeds of her house sale (it would be seen as deprivation of assets if she did so).

OP has said:

MrsSc00ge said:

To confirm the house was legally mine but the money from the sale of the house is morally mum's. This is being used as a top up for a much better quality home than if mum was somewhere purely LA funded.

So they are free to save/invest it as they wish, which includes the option of giving half of it to her husband.

MrsSc00ge

Thanks again everyone. You've really  really helped me. And to those who are concerned about my future, it's all in hand.