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Tax on spending capital
rsbright
Posts: 23 Forumite
in Cutting tax
If I put a lump sum in the bank and draw down capital to spend, pay bills etc. Is this taxed as income? May sound a stupid question but it only just occurred to me!! For several reasons this is what we plan to do for the next 12 months. Invest a lump sum, take the interest and some of the capital each month to boost our income. I know the interest will be taxed at source, but will we be liable for tax on the capital drawings?
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Comments
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no there is no tax liability, you can spend your own capital as you want.0
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Many thanks for the prompt response to my query.... nice to know there's something Gordon can't get money out of!!!!0
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