We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Savings account and tax

I have sold my property subject to contract. I am going into temporary accommodation when I complete. I have not yet put an offer on the table for a new property as nothing suitable has emerged.
I am likely to have to save between £400-£425,000.  
Where is the best instant access account to hold these funds in, in between completion of my property and purchasing a new one?
Do you get taxed at some point on the whole amount (£400-£425,000) as income or do you only get taxed on the Interest earned?

Comments

  • I have sold my property subject to contract. I am going into temporary accommodation when I complete. I have not yet put an offer on the table for a new property as nothing suitable has emerged.
    I am likely to have to save between £400-£425,000.  
    Where is the best instant access account to hold these funds in, in between completion of my property and purchasing a new one?
    Do you get taxed at some point on the whole amount (£400-£425,000) as income or do you only get taxed on the Interest earned?

    You only get taxed on the interest, not the capital.

    How much tax will depend on the interest received and what other taxable income you have.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.8K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.2K Spending & Discounts
  • 246.9K Work, Benefits & Business
  • 603.4K Mortgages, Homes & Bills
  • 178.2K Life & Family
  • 260.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.