Query Regarding Temporary Savings of Gifted deposit for House

Lollypolly25

Good morning everyone,

I recently transferred a large sum (over £150,000) from my European bank account to my UK account. The funds were a gift from my parents intended for a property purchase. However, the sale fell through midway, and I’m now unsure when I’ll need the money again.

To ensure the funds are protected, my plan is to split the amount across different banks, keeping no more than £85,000 in each (within FSCS limits), and place the money in easy-access savings accounts. I understand this may have tax implications, and I’m fine with declaring any interest earned.

Would there be any issues with this approach, or is it all fine to proceed as planned?

Thanks 

Mark_d

There's no problem as such with what you propose.  For safety you could put all the money in National Savings.

In terms of tax efficiency, there's the ISA allowance if you haven't used it, and there's Premium Bonds.

grumpy_codger

Your house purchase fell through, but have you passed the AML checks with your solicitor? If you are still going to buy, think about this as it can be huge PITA with a gifted deposit in general and from abroad in particular.

theartfullodger

Mark_d said:

There's no problem as such with what you propose.  For safety you could put all the money in National Savings.

In terms of tax efficiency, there's the ISA allowance if you haven't used it, and there's Premium Bonds.

No tax on premium bond winnings.  I make 3-4 % max holding - 

Lollypolly25

Ok perfect, thanks everyone!