Where to put money from a house sale

Dazed_and_C0nfused

NorthernGeezer_2 said:

Bigwheels1111 said:

Split over 2 or 3 accounts for sure.

Some fixed and the rest easy access.

The other issue is will you pay tax on the interes ?.

Keep 72k in santander easy access if still avaliable at 5.2%

Put the rest in NS&I 1 year fixed at 6.2% £11,036.00 interest on £178,000, as NS&I is backed by the gov all money is protected. Not like FSCS

where 85k is protected.

He's a basic rate taxpayer yeah and pays tax accordingly on his earned income.
Bit of a !!!!!! paying MORE tax though, if my sums are correct and we put say £150,000 in an NS&I bond at 6.2% he'll get £9300 interest, less his £1000 allowance he'll pay tax on £8300 which equates to a tax bill of £1660.
I'll put another £20000 in an ISA which leaves him £80000 for his care fee's.
I'll jiggle the final figures once the house is sold.
Whats the deal with informing the taxman if he earns over £10000 interest in a year??

Whoever has POA should be completing a tax return for him and ensuring the tax due is paid.

Or appointing an accountant/advisor to do it.  That's unlikely to be necessary from a complexity perspective but it suits some people.

NB.  The cost of an accountant/advisor isn't tax deductible for a personal return like this.

Scot_39

km1500 said:

could I ask how you transferred your 250k from presumably your current account to ns and i ?

You cannot do it yourself on line- but if it is Halifax - the say that 250K is the branch limit for a faster payment

https://www.halifax.co.uk/aboutonline/payments-and-transfers/payment-limits.html

Warslet

You would need to register the POA with the respective banks, NS&I, B/Socs. As I recall I completed forms for registering as a POA and an application form for NS&I and sent a cheque for investments with POA documents. Wherever you decide, may be worthwhile calling to confirm what is needed.  Can make an appointment with for instance Santander.  NS&I was by post but very efficient as I recall. 

xylophone

You would need to register the POA with the respective banks, NS&I, B/Socs. 

https://www.santander.co.uk/personal/support/supported-banking/power-of-attorney

https://www.nsandi.com/help/manage-money-for-others/manage-saving-for-adult#:~:text=of someone else-,Registering your authority with NS&I,us to update your account.


Presumably the PoA has already been registered with OPG?

xylophone

Whats the deal with informing the taxman if he earns over £10000 interest in a year??

See link in my post above.

You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure.

Scot_39

NorthernGeezer_2 said:

Bigwheels1111 said:

Split over 2 or 3 accounts for sure.

Some fixed and the rest easy access.

The other issue is will you pay tax on the interes ?.

Keep 72k in santander easy access if still avaliable at 5.2%

Put the rest in NS&I 1 year fixed at 6.2% £11,036.00 interest on £178,000, as NS&I is backed by the gov all money is protected. Not like FSCS

where 85k is protected.

He's a basic rate taxpayer yeah and pays tax accordingly on his earned income.
Bit of a !!!!!! paying MORE tax though, if my sums are correct and we put say £150,000 in an NS&I bond at 6.2% he'll get £9300 interest, less his £1000 allowance he'll pay tax on £8300 which equates to a tax bill of £1660.
I'll put another £20000 in an ISA which leaves him £80000 for his care fee's.
I'll jiggle the final figures once the house is sold.
Whats the deal with informing the taxman if he earns over £10000 interest in a year??

https://www.gov.uk/apply-tax-free-interest-on-savings

"You need to register for Self Assessment if your income from savings and investments is over £10,000. Check if you need to send a tax return if you’re not sure."

Basically you may have to file a tax return by the looks of it.  

Rather than relying on the more standard annual personal tax calculations (which I dislike - so used to prefer SA anyway)

As POA - I'd really try to make sure you keep your fathers accounts 100% separate - and try not to fall into the trap of swapping personal and fathers funds at any time.

And keep records of everything you spend from it.

I have known friends they felt treated at best insensitively at worst accusingly - by HMRC and benefits offices - when grilled over fairly trivial spends - long since forgotten.

xylophone

Re ISA

5.82% 1 year fix  ISA from Paragon?

https://www.paragonbank.co.uk/resources/paragonbank/documents/savings/power-of-attorney-guide

km1500

Warslet said:

You would need to register the POA with the respective banks, NS&I, B/Socs. As I recall I completed forms for registering as a POA and an application form for NS&I and sent a cheque for investments with POA documents. Wherever you decide, may be worthwhile calling to confirm what is needed.  Can make an appointment with for instance Santander.  NS&I was by post but very efficient as I recall. 

i did not think ns and i accepted cheques - did you send a cheque for 250k to them to invest ?

Warslet

I did indeed send a cheque with POA documents, not for £250,000.   That was in September 2021. It may have changed.  I understand you can call them if you can’t invest with them online and NS&I will go through other options with you. Sending a cheque maybe?  

NorthernGeezer_2

xylophone said:

Re ISA

5.82% 1 year fix  ISA from Paragon?

https://www.paragonbank.co.uk/resources/paragonbank/documents/savings/power-of-attorney-guide

Yeah, best ISA on offer at the moment.
I'm assuming after the year the rate will probably go down, this is then when you make the decision to cash it in for the interest, cash the ISA in too, or move it elsewhere to someone offering better rates??