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Hi there, please can anyone help me out? My mum has over £10,000 in savings, she is going to put £3,600 in a HSBC isa and the rest in a high interest savings account but today a Hsbc representative told her that there is no need to put the money in an isa being as she is over 60 years old and, therefore, retirement age so wouldn't pay interest anyway, is this true?
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Well I am not 100% on that, you should consult an IFA, but I do know that a Cash ISA is suitable for people that pay income tax, so if your mother doesnt pay income tax then perhaps this is an unsuitable product, but again, consult an IFA.
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Hi there, please can anyone help me out? My mum has over £10,000 in savings, she is going to put £3,600 in a HSBC isa and the rest in a high interest savings account but today a Hsbc representative told her that there is no need to put the money in an isa being as she is over 60 years old and, therefore, retirement age so wouldn't pay interest anyway, is this true?
Everyone pays income tax, regardless of age. What varies is the level of income and the personal allowance, which is age related. Over 65's get a higher personal allowance than those under this age, and it goes up again at 75.
If the total income from work, pensions and interest on savings is over this allowance then tax is due - put the money in an ISA. If the total is below the allowance then, your mum could claim the tax back from normal savings accounts. You could also find a non-ISA account that gives better interest after tax than given on an ISA account!
Other considerations - any restrictions on withdrawals. Does you mum need easy access to this money? Or can she forget about it?
Regards,
John
Hi there, thanks for your reply!
What is the personal allowance of a woman who is 60 years old please?
My mum doesn't work, has £11,000 is savings and has an income of about £100 per week from her internet business. Does this low income mean that she will be able to claim the tax back on the interest she earns in her high interest saving account?
Thanks in advance-C
Income tax relief for a pensioner starts at £9030 and then 20% tax on all after that.
You haven't mentioned her pension above, I take it she is drawing it?
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_________________________ ________________ _________________________ ___________________
Income tax relief for a pensioner starts at £9030 and then 20% tax on all after that.
You haven't mentioned her pension above, I take it she is drawing it?
Conniff,
Careful, the OP stated their mum was over 60 not over 65.
The allowance for upto 65 is £5,435 (changing for the next 6 months to £6035 - 10% tax debacle). It was this bracket of women between 60 and 65 that lost out on the 10% tax bracket significantly.
Craigten,
You have to take into account your mums total income including pensions, state and private. It the total is less than £5435 for the whole year, then all the tax paid - even on interest on savings can be claimed back - upto 6 years back. I think the form is R85, to inform HMRC that the bank account should be free of tax - her bank should be able to help with this form (obviously get a different bank person than that your mum spoke to in the your first post!)
I suspect, with £100 per week plus state pension, your mum exceeds the tax threshold, therefore the interest on the savings will be taxed - therefore put the lump sum in the best interest rated/easy access ISA.
Once your mum turns 65, ensure that the Tax Coding Notice she receives is correct. My partners mum had the 65+ tax allowance reduced because HMRC stated her income as over £25000!!!
Conniff,
Careful, the OP stated their mum was over 60 not over 65.
The allowance for upto 65 is £5,435 (changing for the next 6 months to £6035 - 10% tax debacle). It was this bracket of women between 60 and 65 that lost out on the 10% tax bracket significantly.
I do apologise John, I forgot about the 'sex discrimination' that the government are allowed to practice but make it illegal for others to do.
Trading Standards wants your help
Dubious website businesses Conterfeit alcohol and cigarettes Illegal sales of alcohol, tobacco, knives & fireworks to children Cowboy builders or tradesmen Car clockers Counterfeiters Aggressive selling
Never phone or accept phonecalls from debt collection companies.
If you don't believe you can win, there is no point in getting out of bed.
_________________________ ________________ _________________________ ___________________
My mum+savings,she's over 60-Please help?
isa and the rest in a high interest
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Originally Posted by craigten
