Renting After Selling Tax Implications

Kat1e

We've sold our property and the date for exchanging contracts is getting closer (gulp) but we haven't found anywhere we'd like to buy. A previous sale fell through at the last minute so we're really keen that this one to goes ahead and have been looking into rental options.
My hubby thinks that because the money won't be used to buy a property straight away and therefore will be just sitting in our bank account so to speak until we find somewhere that we'll need to pay tax on that profit/money. Can anyone tell me if this is correct please?

anselld

You may be taxed on the pathetic amount of interest you earn on the money, but even that may well be covered by the £500/£1000 personal savings allowance (each).

AnotherJoe

Your husband is wrong (assuming this was your main residence you were living in)
Doesn't matter if you buy another house a Ferrari or spend it on holidays. No tax.

As said if you earn some interest on it there may be tax to pay on that. . But not the main amount.

Kat1e

This is really good news. Thank you for replying. I think he thought there would be something like capital gains to pay as it's not being reinvested straight away.