Liable for Tax?

[chappie]

If we sold our house and put the proceeds of the sale into an account where it would earn us some interest, then moved into a rented property while we looked for another house to buy, would we have to pay tax on the interest we would receive while the money is in the bank? We would hope that it wouldn't be in the bank for more than a few months, and by that time we would have found another property to buy. Thanks for replies.

[PrinceRainie]

Assuming you are both basic rate tax payers, then yes tax would be payable, but deducted at source (taken into account within the interest rate).
If you are a higher rate tax payer, then a further liability may be due upon submitting your tax return.
If you are a non tax payer, then you may not have to pay any tax so long as the interest, when added to any other income you have doesnt exceed your personal allowance for this tax year.

[chappie]

Thanks for reply.

[dancecaller]

If you are not a tax payer you have to ask the bank for a form to say so, then they can pay interest without taking the tax off. If the interest would use up more than your unused personal allowance you should let them take the tax off, then ask your tax office for a form to reclaim some of it (a lot simpler than the Self Assessment form)

[chappie]

Thanks for reply.