Tax on savings interest with War Widows Pension

I’m trying to work out how much tax will be due from savings interest on the proceeds of my mother-in-laws house sale once we invest it, since she is now in a care home, so we have had to sell her home. Here are the details of her income: £4,300 - State pension, attendance allowance £12,000 - War widows pension, which is not liable for tax as we understand it The proceeds from the sale of her house will be £400,000 and we plan to invest this into 1 year fixed term bonds paying around 6%, so the yearly interest will be £24,000 which will provide for some of her care over the next year. If I understand it correctly and this is where I need confirmation or correction, she should be able to earn up to £18,570 of combined taxable income and savings interest, which is comprised of £12,570 income tax allowance, plus £5000 savings starting rate allowance, plus £1000 savings personal allowance. Her taxable income is £4300 I believe, since war widows pension is not taxable, so if I subtract this £4300 from her £18,570 combined income and savings allowance, it means that the first £14,270 of her savings interest should not be taxed and then anything over this will be taxed at 20%, so approximately £2000 tax due when we do a tax return for her. Or should I be including the tax exempt war widows pension of £12,000 in the calculations ? … which would make a big difference to the tax due. I would very much appreciate it if someone can confirm if I got this right and if not provide some guidance on how I calculate the tax due.

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