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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13863
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Is money raised through equity release taxable ?

Resolved Question:

Is money raised through equity release taxable ?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Hi

Thanks for your question

Can you expand - is this from your own residence or another means such as a pension pot ? And will the money released then created a "debt" on the equity lump sum?

Thanks

Sam

Customer: replied 2 years ago.

own house, yes debt will be created

Expert:  Sam replied 2 years ago.

HI

Thanks for your response

Then no - releasing money through this way does not rise to tax being due on the lump sum as its your money in your own property, its not investment income or eanred income.

Whilst not my remit (Financial advise) make sure you take independant advise before proceeding, as the rates in interest added onto the equity lump sum each year - can after as little as 10 years almost wipe out the whole cost of the property value.

Let me know if you require any further assistance with your question , or the answer I have provided.

Thanks

Sam

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