PERSONAL SAVINGS ALLOWANCE

[dexter999]

The wife and I have been lucky enough to get a substantial sum from 2 family inheritances, and we are wondering where's best to put our money re Personal Savings Allowance.
We have no mortgage and no debts, and are both retired with and are within the 20% tax bracket.
We have maxed out all our cash ISA's and premium bonds to protect the money from tax, but we still have about £150k in various variable and fixed rate savings accounts.
This will of course attract interest from the tax man for PSA purposes.
We regularly move the money about to the highest interest provider.
Where can we put this money to try and alleviate the PSA tax we will have to pay?
Do you think we should leave the money in the variable interest accounts and just pay the tax, or where can we put it?
We do not like the idea of stocks and shares.
Any ideas and advice would be welcome.

[strawn]

You could consider buying coin-of-the-realm gold coins i.e. Sovereigns or Britannias. You can buy them, and store them, from/at the Royal Mint and/or various commercial firms. There will be no income tax or capital gains tax on them.

Or, if you are happy to trust the government with your money you could lend to it by buying "gilts". By choosing gilts with a low "coupon", i.e. interest payment, you would concentrate your return in capital gains which, in the case of gilts, are tax-free.

Since you are leery of "stocks and shares" you might be wise to consult a financial adviser before you plunge into gilts. Be sure he explains the difference between Index-Linked Gilts and Fixed Interest Gilts.