Saving one chunk - quick question

Iwani

Hello,

I want to lock away £15k from the equity in my house when I sell, for the next few years until I'm able to buy again.
I was wondering - my hubster earns £25k so obviously has to pay tax but I only work part time and earn under the threshold for paying tax (about £6.5k).

Can I put it all my name and save tax free?
Sorry if this is a really stupid question, I know nothing about savings really.

Thanks in advance!

opinions4u

Yes. The interest would count as your income and if the total is under the tax threshold you can sign an R85 form to receive interest without tax being deducted.

psychic_teabag

Don't forget to put £5640 into an ISA each, if you don't already have them. Could perhaps open them now with minimum deposit to reserve the good rates while they're available.

Newly_retired

But you may get better rates outside an ISA perhaps, and as you say you are not a tax payer, the interest can be paid gross.

Iwani

Thanks all.
That's kind of what I was thinking about ISAs, I feel like I've seen better rates elsewhere, though I have only just begun looking into it.
I didn't realise about it being counted as income though, it will still keep me under the threshold I believe but has raised a question in my mind about it affecting other things, eg. tax credits threshold.
Nothing's ever quite straightforward is it!

psychic_teabag

We are currently in "ISA season" so the ISA rates are relatively good. At other times of the year, it's true that non-ISA accounts may have higher gross returns. But ISA also have long-term benefits if you might ever become a taxpayer in the future.

Monmouthshire BS currently have a flexible saver offering 4%. It's really intended as as a regular savings account, but is quite flexible over deposits - don't need to deposit every month. Max £1000 per month. Could just put £1000 in there are leave it, or drip-feed £1000 per month from another savings account. See http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#dripfeed