Tax efficient way to shelter house proceeds

kinny_boy

Hello,

Wife and I are selling our house and moving back with family for the short term whilst we look for a suitable house (we'd like to be chainless when we next buy).

Problem is that proceeds of our house will net us a few hundred thousand (oh if everyone had that problem I hear you cry) which we want to maximise the returns for (in of course the safest way possible) before we buy ;-)

Our buying timescales are between 3 - 18 months potentially.

I'm in the higher tax band and the wife will be almost in the higher tax band (definitely will be if we put the money in her name with the interest generated).

Question is what to do with the proceeds of the sale. I thought of chancing £30k apiece on the premium bonds, still leaves a considerable amount though. Are there any cunning plans I can use to ensure that we reduce the amount I give to the tax man??

thanks for any advice
kb

silvercar

ISAs? National savings do some good products for higher tax payers.

To be honest, with that amount of money, you should find a good IFA to advise you.

zzzLazyDaisy

With a potential time frame of 3 months (at the shortest) and the need to get easy access to the funds if you spot your dream home, you can't afford to tie the money up. If you haven't both already used your cash ISA allowance, I'd do that first. Then I'd look for the highest interest account I could find. The Coventry has a good one, and it is linked to a current account, so you get immediate access to your money when you need it. Sadly the interest will be taxable.

I can't think of any short term tax efficient savings or investment schemes (I'm assuming that you don't want to risk your house money in a volatile stock market???). But I've susbscribed to this thread, as I'm in a similar position, tho not with such a large pot