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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4094
Experience:  FCCA FCMA CGMA ACIS
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I have a small deposit of some £18000 - with James Hay who

Customer Question

I have a small deposit of some £18000 - with James Hay who pay out at £160 per month.
My only other income is £500 paid as a state pension.
I have no other income and now need to withdraw from the James Hay fund for say £10000.
What is the best arrangement to minimise tax if any?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith one of the experts on Just Answer and happy to help you with your question. There is no tax on the withdrawal of capital from a deposit or indeed any other account. Only the interest earned is subject to Income tax and with the figures you have given me your income is below your personal allowance of 10.6K so you would not be liable to tax anyway. Capital Gains Tax does not apply to deposits held with deposit takers. I do hope that I have been able to set yout mind at rest on this matter.