Advice wanted re tax on savings interest

Lukash

Hello, I wonder if anyone can help me with a query? I have recently come into some money and currently have it invested and managed by a financial adviser, but I'm concerned about the charges, specifically that they'll wipe out any gains. I wanted to know if I invested the money in a savings account instead (£90K), would I be liable for tax on the interest earned? And if so, how much? I'm on a very low income. I've tried to look it up myself and have gone onto the HMRC website but I haven't found anything that relates to my particular situation. I' really appreciate any help, many thanks.

Albermarle

Although a financial advisors charges will have an effect, it would be unlikely to wipe out all gains.
In the long run investing usually beats savings, so have you considered the third option of managing investments, pensions etc yourself?
Or a fourth option of leaving some invested and savings some.

Anyway £90K in a savings account would generate about £4000 in interest.

If your taxable income is less than about £14.5K pa then you would not pay any tax on that.

If it is above that, then your first action would be to put £20K into Cash ISA, where interest is protected from tax.

Savings | MoneySavingExpert

Lukash

That's really helpful, Albermarle, many thanks.