Tax

jimmyburg

Newbie

First Post,

My father is giving me a lump sum (20K) as im going to be starting to build a house in the next 6 Months, Im self employed was wondering whats the best thing to do with this money, if i stick it in my own current acount will i be taxed on it. I have an isa which is max. for this year.
any advice appreciated.

TomsMom

If you've maxed out your 08/09 ISA there isn't really much of an alternative, wherever you put it you will pay tax on the interest. Plus current accounts don't usually pay much in the way of interest except the Alliance & Leicester Premier Account but I think you have to pay in a minimum salary every month, you'd need to check the Ts & Cs.

Perhaps the best thing is to look for an instant access account with the highest rate, assuming you will want to have quick access to the money once you start building.

Someone else may come along with a better idea.

Meltdown_2

jimmyburg wrote: »

Newbie
First Post,

Well actually, it's your second ... (though they do have some things in common).

My father is giving me a lump sum (20K)

Glad to see your father has firmed up the gift at the top end of the range.

as im going to be starting to build a house in the next 6 Months,

Im self employed was wondering whats the best thing to do with this money, if i stick it in my own current acount will i be taxed on it. I have an isa which is max. for this year.
any advice appreciated.

Do you still wish to avoid declaring this money for tax purposes?

jimmyburg

sorry,

my main problem is, say i put the money into my main account,
will it be taxed/work related (not interest based) as im self employed along with my other earnings.
say the inland revenue want to see my books, is it ok to put the lump
sum into my main account or is it better my father holding onto it
to i need it.

RayWolfe

There is no tax implication of money arriving in your account provided that you can show the Revenue where it came from.
There could be IHT problems if your father dies within 7 years of the gift. There could be problems if your father needs care in the future and he has given his money away to you.