Do we pay tax on our house sale interest now that we no longer own a property?

GrinningRhino

We changed jobs last year and now live in a house that goes with our jobs. 
We decided to sell our house as ultimately we are planning to retire to a different area. We live in Scotland just now.
We now have all the proceeds of the sale in various savings accounts.
We are not liable for Capital Gains, my solicitor informs me, but I suspect I need to declare the interest that's accrued on the capital.
Am I right?
Thanks

RAS

Income tax, unless you are selling shares etc.

anselld

When you say you "now" have the proceeds in savings, if you mean sometime since 6 April 2025 then you have until 31 Jan 2027 to declare the interest.  If you mean for the 2024/25 tax year ended on 5th April 2025 then you have until 31 Jan 2026 although you can do anytime from now.  HMRC will be notified anyway by the Banks/Building societies so they will chase it up at some point.

Bookworm225

yes, if you have earned interest on money in a savings account then of course it is taxable, whether any tax is payable depends on your individual tax position.

if you have "job related accommodation" then your solicitor is correct in that your "old" house remains exempt from CGT for as long as you own that old house and live in the job house because the presumption is you will return to the old house when the job ends.

HMRC are however very generous and do allow people to change their mind, sell the old house before the job ends, and still keep the tax exemption on that sale despite no longer living in it.

FrugaiMacDugal

GrinningRhino said:
We now have all the proceeds of the sale in various savings accounts.
We are not liable for Capital Gains, my solicitor informs me, but I suspect I need to declare the interest that's accrued on the capital.
Am I right?
Thanks

If 'we' means you have a partner then you can each put £20k into an ISA each year from 6th April to 5th April, all interest tax free.

Any interest from your 'various savings accounts' will have to be declared.

Neil49

You could also buy premium bonds up to £50k each. Although you don't get interest on the money, any winnings are tax free. You may end up better off or maybe not! 

Albermarle

The source of your savings funds is not relevant.
The tax regime on savings interest is exactly the same if you get the original money from a house sale, inheritance, savings from earnings or a win on the horses, or any other sources.
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