Minimizing tax on income from sale of equipment...

lsteele12

Hi,

I'm a freelance, self-employed musician. I've just sold (after 12 months of trying) a double bass for £5200. My intention is to save this, with the eventual goal of using it as part of a deposit for a house or buying another instrument.

This represents a large sum to my so I'm - unsurprisingly - keen to minimize any tax I have to pay on this. My questions are 1) is there anything I can do to minimize my tax?, and 2) where should I save the money, given that I don't need immediate access to it?

Any help or ideas is gratefully received.

Thanks!

RayWolfe

What tax?
Interest on the money deposited in a savings account?
Don't let tax drive your decision. A tax free ISA savings account for 3.6K before 6th April and the rest after, may be the answer. On the other hand you may get better net interest elsewhere.

lsteele12

My principle concern is on the income tax that I would have to pay on this. Perhaps it's a stupid question but I don't want to have to pay any more than absolutely necessary!

However I'm also looking for any suggestions on the best way to save this money, given that I wouldn't need access at the drop of a hat.

fengirl_2

As it was an asset of the business, there is no tax to pay on the sale of the instrument. You only include in your accounts sales of goods and services.