Tax on savings if not working

poppygirl555

Hi I'm new to this site so forgive me if this has already been asked. I recently sold a house I was renting making £120k profit. I live with my partner who earns enough for both of us, so I'm not working or claiming any benefits. I have put some of the money away in 2 and 5 yr bonds and some of it has paid off an amount on our mortgage. My question is, as I no longer earn and pay tax in the normal way, do I have to pay tax on the savings or is there an excemption form I can fill in. I'm not particularly financially minded and certainly don't understand the tax system, so anyone out there who can advise, I would be very grateful.
Thanks in anticipation...

Stompa

Take a look at:

http://www.hmrc.gov.uk/helpsheets/r85-helpsheet.pdf

and:

http://www.hmrc.gov.uk/forms/R85.pdf

McKneff

Even if you are not claiming benefits you should stll sign on to enable you to get your NI credits,

Not doing this could create long term problems for you, ie claiming benefitis in the future and also long reaching as far as not being able to claim a full state pension.

I believe the exemption form you mention is an R85.

poppygirl555

Thanks for your advice, I'll go and talk to someone and give the NI helpline a call.