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Full Version: Where To Invest £32k? Tax Implications
House Price Crash forum > Investment > Cash ISA's and Savings Accounts
The Smart Money
Afternoon,

I'm relatively new to HPC but ive found it to be a great site with intelligent advice and sound fundamental ideas from alot of knowledgeable people - I salute you. anyway moving swiftly on...............

My questions:-

1) I have £32k cash to invest (proceeds from STR (sell-to-rent)). being a frugal, careful (tight) soul im looking for any advice in regards to a suitable investment vehicle or storage for my cash, i.e. bonds, ISA's, savings account etc etc. Any Advice?

One idea I have juggled with is to transfer or 'gift' the whole amount to my current (long term) girlfriend, who is a non taxpaying medical student. I am a lower rate taxpayer. We could then set up a high interest savings account (A&L, NR etc) in her name and store our future nest egg there until the dust settles after the immanent HPC to allow us both to buy a place together at realistic prices.

I have considered the implications with this idea and I trust my girlfriend implicitly under any circumstance (some will say foolish no doubt blink.gif ).
I however with my limited knowledge of the law envisage tax implications with this idea in regards to Capital gains, income tax etc,

2) How would I transfer this cash to my g/f? (without incurring taxes etc) any advice on this would be much appreciated


Thankyou in antisipation.

SM


lastly in the words of the great Warren Buffet

"Be fearful when people are being greedy, be greedy when people are fearful"

"Rule 1, Never Loose Money, Rule 2, Never forget Rule 1"

"Risk comes from not knowing what you are doing"
Ologhai Jones
If you want as near to 100% safety as you can get really...

If you're planning on saving for three years or more, you might be interested in NS&I's Index-linked Certificates. A three-year certificate would take £15k off your hands for a while.

Perhaps you could put the remainder into one of the many instant access saver accounts at 6%+.

Also, as we're nearing the end of the tax year, make sure you've used this year's £3k ISA allowance and that you use next year's £3600 allowance sometime after Apr 6th.

As I say, this rather assumes that you're not wishing to do anything risky.
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