What To Do

P911TRS

I only have my salary as an income 

Doctor_Who

Cammywatson033 said:

I only have my salary as an income 

And any interest - it is taxable income even if it's taxed @ 0% (i.e. within the £500/£1000 PSA).

badger09

@Cammywatson033
In your OP you mention ‘we’. If your partner is a basic rate taxpayer (& you trust them) put it in an account in their name & avoid any tax liability. 

Or put it in a joint account. 

P911TRS

badger09 said:

@Cammywatson033
In your OP you mention ‘we’. If your partner is a basic rate taxpayer (& you trust them) put it in an account in their name & avoid any tax liability. 

Or put it in a joint account. 

My wife’s earns £330000 so is in the intermediate tax rate banding. Im guessing im best to open the account in her name then?

EthicsGradient

Cammywatson033 said:

badger09 said:

@Cammywatson033
In your OP you mention ‘we’. If your partner is a basic rate taxpayer (& you trust them) put it in an account in their name & avoid any tax liability. 

Or put it in a joint account. 

My wife’s earns £330000 so is in the intermediate tax rate banding. Im guessing im best to open the account in her name then?

Is there a decimal point needed there, or is there an extra zero?
One way to keep from paying tax on the interest would be to put some in an account you close this tax year, and some in which you withdraw most of it when the time to buy the house comes, but keep the minimum (or your emergency cash) in it until next tax year at least, and which pays annually - that way, the interest, and the tax on that portion, is in the next tax year, so you can use 2 years' £500 allowance.

P911TRS

EthicsGradient said:

Cammywatson033 said:

badger09 said:

@Cammywatson033
In your OP you mention ‘we’. If your partner is a basic rate taxpayer (& you trust them) put it in an account in their name & avoid any tax liability. 

Or put it in a joint account. 

My wife’s earns £330000 so is in the intermediate tax rate banding. Im guessing im best to open the account in her name then?

Is there a decimal point needed there, or is there an extra zero?
One way to keep from paying tax on the interest would be to put some in an account you close this tax year, and some in which you withdraw most of it when the time to buy the house comes, but keep the minimum (or your emergency cash) in it until next tax year at least, and which pays annually - that way, the interest, and the tax on that portion, is in the next tax year, so you can use 2 years' £500 allowance.

😂😂😂 sorry, typo. She earns £33,000