Paying Income Tax on Savings???

DiegoGarcia

Good Afternoon everybody.


This might sound like a stupid question to some people, but I just wanted to clear something up.
Put my mind at rest a little.


I read somewhere that you have to pay income tax if you have savings that are more than 30K?
I pay the basic rate of tax, because I earn an average 25k per year before tax.
But I recently received 38,000 from the sale of a house that me and my Ex partner had a mortgage on.
I currently have 15 k of this 38 stashed away in an ISA, and the rest is in current accounts, which will gain interest. I guess my real question is, do I have to pay tax on the rest of my money?? I'm so confused with reading other peoples stories online. Please help.

McKneff

No, you don't pay income tax on your savings.


You only pay tax on the interest your savings make if you are a tax payer.

zygurat789

DiegoGarcia wrote: »

Good Afternoon everybody.


This might sound like a stupid question to some people, but I just wanted to clear something up.
Put my mind at rest a little.


I read somewhere that you have to pay income tax if you have savings that are more than 30K?
I pay the basic rate of tax, because I earn an average 25k per year before tax.
But I recently received 38,000 from the sale of a house that me and my Ex partner had a mortgage on.
I currently have 15 k of this 38 stashed away in an ISA, and the rest is in current accounts, which will gain interest. I guess my real question is, do I have to pay tax on the rest of my money?? I'm so confused with reading other peoples stories online. Please help.

Did you live in this house for the whole of the time you owned it?
Why are you so worried by something you read somewhere?
What do you mean by "pay tax on the rest of my money"?
If you answer yes to question 1 there is no CGT.
You will have to pay tax on the interest earned outside of your ISA but this will be deducted by the bank.
I have no idea what the £30k is all about.

DiegoGarcia

I did live in the house for approx. 8 months out of the 12 months that we owned it.
I was under the impression that you had to pay tax if you had lots of savings? But it makes sense if it is just the bank taking the tax off of the interest. I thought that the government would think that I "earned" more than 50k this year, even though the 38k from the sale of the house isn't pay.

zygurat789

DiegoGarcia wrote: »

I did live in the house for approx. 8 months out of the 12 months that we owned it.

That's OK.