saving advice needed

kooboy

hi experts,
I have sold my house for 360k, which I bought years ago for £170k and still outstanding mortgage on it is 90k.I need advice on how to save the gains, by not attracting much tax. please advice

El_Torro

Putting £20k into a Cash ISA always helps with regards to tax. Cash ISAs also currently have good interest rates.

£50k in Premium Bonds is an option, since anything you win is tax free. I would only really recommend Premium Bonds to someone who would otherwise pay 40% tax on interest though. 

Remember that the priority should be to maximise your return after tax. If that involves paying some tax on interest then so be it. 

Keep_pedalling

Are you looking to buy another property with it at some point in the future?

Albermarle

What the best thing to do with money like this heavily depends on when you are likely to need to access it.
Less than 5 years - mainly cash savings
5 to 10 years - mixture of cash and investments
Over 10 years - mainly investments
Retirement - Pension

Once you know this then you can look at how best to minimise tax.

badger09

kooboy said:

hi experts,
I have sold my house for 360k, which I bought years ago for £170k and still outstanding mortgage on it is 90k.I need advice on how to save the gains, by not attracting much tax. please advice

Not enough info. 

When you say ‘sold’ do you mean the sale has completed and you have the money, or you have ‘sold subject to contract’?

If sold/completed was the £90k mortgage not paid off? 

Was this your private residence or was it a holiday home or a house you rented out?

What taxes are you trying to minimise?

kooboy

badger09 said:

kooboy said:

hi experts,
I have sold my house for 360k, which I bought years ago for £170k and still outstanding mortgage on it is 90k.I need advice on how to save the gains, by not attracting much tax. please advice

Not enough info. 

When you say ‘sold’ do you mean the sale has completed and you have the money, or you have ‘sold subject to contract’?

If sold/completed was the £90k mortgage not paid off? 

Was this your private residence or was it a holiday home or a house you rented out?

What taxes are you trying to minimise?

Subject to contract.. but just want to know what are the best options, when completed

kooboy

Keep_pedalling said:

Are you looking to buy another property with it at some point in the future?

Not buying another one, plan is to pay back on the living property, the one I sold is rental property

eskbanker

kooboy said:

badger09 said:

kooboy said:

hi experts,
I have sold my house for 360k, which I bought years ago for £170k and still outstanding mortgage on it is 90k.I need advice on how to save the gains, by not attracting much tax. please advice

Not enough info. 

When you say ‘sold’ do you mean the sale has completed and you have the money, or you have ‘sold subject to contract’?

If sold/completed was the £90k mortgage not paid off? 

Was this your private residence or was it a holiday home or a house you rented out?

What taxes are you trying to minimise?

Subject to contract.. but just want to know what are the best options, when completed

But your posts don't give enough to go on - your reference to buying and selling prices as well as what to do with the 'gains' could suggest that you're trying to minimise Capital Gains Tax liability, but if you're just wanting to know where to save £270K of sale proceeds then all that is irrelevant.

And fundamentally you haven't indicated when you're likely to need access to the money, which drives different answers....

saajan_12

kooboy said:

Keep_pedalling said:

Are you looking to buy another property with it at some point in the future?

Not buying another one, plan is to pay back on the living property, the one I sold is rental property

Huh? Please be clearer: 
1. How many properties do you own? 
2. Which property are you selling?
3. What mortgages do you have on the remaining properties? (balance and interest rates)? 
4. What do you want to do with the sale proceeds? 

GrumpyDil

And as you are selling a rental property assume you are aware of the requirement to pay CGT on the increase in value.

kooboy

GrumpyDil said:

And as you are selling a rental property assume you are aware of the requirement to pay CGT on the increase in value.

Yeah, I'm asking advice on how to save on CGT..