Proceeds of sale. What to do until i find a new property?

[BrightStar2021]

Hello mums netters,
Looking for some advice as I have absolutely no idea what to do. I am not sure if my thread should be here or in the finance section. But here goes.... I have a salary of 70k (specific tax implications may apply), just sold my property and have 90k to put towards a buying a new family home. We are currently looking and hoping to find something within 6 months or so, dependingon the market may take up to a year. My questions are, 1. will I pay tax on the 90k proceeds of sale of my property if I put it into the purchase of new property within a year? 2.Will i be taxed if it just sits in my current account? 3. if I put it in a savings account earning interest until I need it towards a deposit for new property, within a year will I taxed?
Thank you

Hi, I'd repost in Money to get more traffic on this.

Was it your family home/ sole residence/ not rented out? If so no cgt will be payable. You’ll have to pay tax on the interest. Best to put it in a high interest account.

Thanks, will do

Hi.. as there is more than £85k it would be worth splitting the money over more than one bank... just in case one goes under. You are covered up to £85k

Hi, if you put 20k on an isa you won’t pay tax on the interest. So I would put 20k in an isa before April, 20k in an isa after April and the rest in a savings account.

Your own house sale is covered for more than the usual £85k temporarily

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

@wizzler @stealthninjamum thanks for the advice, very helpful and much appreciated

@HotelNotPortofino thank you for the posting the link, I wasn't aware of this

You could split it between you and your partner (assuming there is one) and put it the premium bonds. Safe as houses, instant access, and no tax to pay, however the interest isn’t as good.

@FuckinghellthatsUnbelievable I was renting out the property and living with my partner in his property. We are looking to buy a home together.
When you refer to high interest account, do you mean a current account or savings account? Thanks

@MadeOfAllWork thanks, I will look at the interest rates

If you’ve been renting out the property, you may incur capital gains tax (28%) from selling the property. You’ll be able to apportion this depending on how many years you lived in the property vs how long you rented it out.

Ah you might be liable for some capital gains tax then. How long was it rented out for? How long did you have the property? What was the increase in value?

a rough calculation would be increase in value divided by number of years owned multiplied by years rented. Minus £6k (cgt allowance ). If that number I’d higher than zero you will probably need to pay tax.

Thanks @Rispa42 and @FuckinghellthatsUnbelievable for clarifying around CGT I will do the calculations.

https://www.gov.uk/tax-sell-home/let-out-part-of-home
You only have 60 days from the sale to report and pay CGT

For savings rates look at Moneysavingexpert for top instant access savings accounts and cash ISAs, currently Metro bank is paying 5.22%