Lump sum advice for 3 years

reby0711

I’m selling a property that I used to live in and had rented out for the last few years. I will have about £65-70,000 that I want to invest for the next 3 years until my mortgage fixed deal expires in January 2027
What would be the best option and where do I stand with capital gains tax etc ? 

Dazed_and_C0nfused

reby0711 said:

I’m selling a property that I used to live in and had rented out for the last few years. I will have about £65-70,000 that I want to invest for the next 3 years until my mortgage fixed deal expires in January 2027
What would be the best option and where do I stand with capital gains tax etc ? 

Investing for 3 years is fairly high risk due to the short time frame.

Have you considered savings accounts or does it have to be investing?

Albermarle

Normally 3 years is seen as short term, and better to stick with savings accounts. Probably best to fix some of it for 2 or 3 years and use cash ISA's for most of it to reduce possible tax on interest.
Best Fixed Rate ISA Rates | Rates Up To 5.25% (moneyfactscompare.co.uk)

eskbanker

reby0711 said:

I’m selling a property that I used to live in and had rented out for the last few years. I will have about £65-70,000 that I want to invest for the next 3 years until my mortgage fixed deal expires in January 2027
What would be the best option and where do I stand with capital gains tax etc ? 

Where you stand with CGT is that you need to follow the defined process for calculating the chargeable gain from the sale, factoring in the Private Residence Relief available for the period during which you lived there:

https://www.gov.uk/tax-sell-property/work-out-your-gain

reby0711

Thanks I’ve done the CGT calculation for the sale proceeds and this is what I’ll be left with so was so more about CGT on any interest I might gain ? 

eskbanker

reby0711 said:

Thanks I’ve done the CGT calculation for the sale proceeds and this is what I’ll be left with so was so more about CGT on any interest I might gain ? 

CGT only applies to gains crystallised when disposing of assets, so isn't relevant to interest subsequently earned on the proceeds, although that may be subject to income tax once all allowances and nil rate bands have been used:

https://www.moneysavingexpert.com/savings/tax-free-savings/