what happens with my 75k ?

mfalsey

I am thinking of putting £75k into a high interest instant access account prior to using it to buy a property.

Will i rouse suspiscions of where it came from?
Will i pay any tax on it?
Any ideas?

dunstonh

Will i rouse suspiscions of where it came from?

If you pay it in cash, then yes. If its an automated payment or cheque, then unlikely.

Will i pay any tax on it?

If you are a taxpayer, then yes. Even if you are not, the amount of interest is likely to be around £3500 a year which means you would become a tax payer if you earnings were over £1000 a year from other sources.

Cook_County

A deposit of this size will frequently trigger questions as to where it came from, but I assume it not hot money so why are you concerned?

mfalsey

Is a gift from parent to buy a property.
watching too many movies has put ideas into my head! lol

dunstonh

If your parents write a cheque or do a bank transfer, then there would be no problem as there is a clean audit trail from one account to the other.

sarahlouise210

There is a possibility that a large sum of money deposited in this way could cause suspicion and be picked up bt HMRC..the normal procedure would be to randomly check your tax affairs and in doing so ask where the money came from. The main reason for this is that if anything happened to your parents within 7 years of them giving you the £75,000 then the money would be included when calculating if inheritance tax was due.There would be no other implications from HMRC as long as you are paying tax on the interest and declaring that interest for tax credit purposes.