Advice from sale of property

fallenstar_2

Hi all,

I am about to complete on the sale of a property that will leave me with a cash amount that I am planning on using to extend a lease on another property.

The process to extend the lease is ongoing and could be another 10-12mths before I will need to pay the total cost. Therefore I wish to keep the cash somewhere that I can both get access to easily when the times comes to pay the lease extension costs and grow at least some interest.

The amount is substantial so also wasn't sure of the tax free allowance on savings and the relevant savings thresholds for each financial year.

Any suggestions would be appreciated.

Thank you.

YorkshireBoy

fallenstar wrote: »

Hi all,

I am about to complete on the sale of a property that will leave me with a cash amount that I am planning on using to extend a lease on another property.

The process to extend the lease is ongoing and could be another 10-12mths before I will need to pay the total cost. Therefore I wish to keep the cash somewhere that I can both get access to easily when the times comes to pay the lease extension costs and grow at least some interest.

The amount is substantial so also wasn't sure of the tax free allowance on savings and the relevant savings thresholds for each financial year.

Any suggestions would be appreciated.

Thank you.

First suggestion would be to define "substantial".

Are you wanting to avoid paying tax on the interest or maximise returns after any tax payable?

You say "I", but are there two of you? In other words are we talking purely sole accounts for you, or sole accounts for another party and joint accounts too?

fallenstar_2

Substantial would be over £25k.

If possible, it would be interesting to see what are my options with both - avoiding tax and maximising my return. For a relatively short period, I would be leaning towards getting the most out of my savings.

It's just a single account, as in just me.

YorkshireBoy

All you need to know is here...

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest?_ga=1.220416472.1765389669.1474723913

Best savings accounts, personal savings allowance (PSA) details, and suggestions as to which accounts.

You won't maximise your return without using high interest current accounts. However, you may consider it's not worth the hassle for such a short timescale.

If the returns will push you over the PSA then maybe consider a cash ISA.

fallenstar_2

Great thank you.