tax on savings after house sale

V2001

do you only pay tax on the savings after it goes over 10k, so your only getting taxed on the actually amount over 10k?
eg you earn 15k from savings, so after 10k thats 5k.  so tax is paid on 5k?

Albermarle

V2001 said:

do you only pay tax on the savings after it goes over 10k, so your only getting taxed on the actually amount over 10k?
eg you earn 15k from savings, so after 10k thats 5k.  so tax is paid on 5k?

No, how much varies with how much other taxable income you have.
If you have no other taxable income, you can earn £18,750 in interest in a tax year, tax free.
If you have a salary/taxable income of over £50K, you can only earn £500 tax free.
Plus different scenarios inbetween.
Tax-free savings: check if you're eligible - Money Saving Expert

Normally interest is reported directly to HMRC by the savings provider. However HMRC have set an arbitrary limit of £10K, where you have to also report it via self assessment,

saajan_12

V2001 said:

do you only pay tax on the savings after it goes over 10k, so your only getting taxed on the actually amount over 10k?
eg you earn 15k from savings, so after 10k thats 5k.  so tax is paid on 5k?

No, you pay tax on the interest that exceeds your personal savings interest allowance (often 0% / £500 / £1000 / £5000 depending on your income tax situation). 

The 10k figure is just when the taxable interest has to be processed in a different way (self assessment vs tax code adjustment)