Where to put money from a house sale

NorthernGeezer_2

Scot_39 said:

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.

Once the house is sold, the proceeds will go straight into dads bank for which I hold POA.
Already started a spreadsheet and It's my intention to pay for everything from his account, solicitor, estate agent etc and if I have to pay anything from my account, keep receipts and claim it back from his account once completed.
I'm not expecting interest on investments to exceed £10000 but if its easier to register for self assessment i will do so.

xylophone

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??

If you wish to retain ISA status on any part of the funds, you ask your chosen new provider to arrange the ISA transfer..

NorthernGeezer_2

xylophone said:

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??

If you wish to retain ISA status on any part of the funds, you ask your chosen new provider to arrange the ISA transfer..

Is it the same with the government bond, 6.2% interest is only guaranteed for a year so iots likely to come down so do you cash the bond in for a better deal elsewhere??

xylophone

Is it the same with the government bond, 6.2% interest is only guaranteed for a year so iots likely to come down so do you cash the bond in for a better deal elsewhere??

See

https://www.nsandi.com/interest-rates

If you have one of our fixed term investments that is about to mature, we’ll contact you around a month before the maturity date to let you know your options and the current renewal rates.