pension lump sum

Wendywasp

I have recently retired and have a lump sum of £100,000 which is currently sitting in our (my husband and I) joint savings account. He has not retired and so is earning a decent wage above £50,000.  I have just opened a cash ISA and will tf £20,000 into that.  I will probably spend another £30,000 on some house improvements.  The remaining £50,000 I am looking to put in a high interest savings account.  As a retired teacher, I receive a monthly pension as well. My question is, will I need to pay tax on any interest received on the savings as it is a joint account.  Would it be better to have it in my name only?

eskbanker

If your husband is a higher rate taxpayer then it's likely to make more sense to keep the savings in your name.

dunstonh

With your husband being a higher rate taxpayer, then the pension wrapper could come into play.  Higher rate tax relief is very beneficial.  Especially if he is going to be a basic-rate taxpayer in retirement.

Albermarle

If the £50K will not be needed for some years, you should maybe consider investing some of it rather than just saving it. 
One way could be for your husband to add more to his pension, especially as he is a higher rate taxpayer.
Although it depends on the type of pension.

jimjames

Has your husband used his ISA allowance this year? If not then in total you could get £80k of the money into ISAs between now and early April by using both your allowances for this year and next. The type of ISA will depend on your need for the money in the near/long term.

Alexland

In addition to the above points consider if you might want to use ns&i premium bonds to save some tax free until it can be ISA wrapped next tax year?