Increasing numbers of older homeowners are using equity release schemes to release tax-free cash from their properties.
The equity released from your property using one of these schemes is tax free.
However, if you go to invest that money or put it into a savings account, you may have to pay tax on any growth.
You can earn up to £1,000 in interest each tax year without having to pay any tax if you’re a basic rate taxpayer.
If your plans are longer term, you may want to consider a drawdown equity release plans, as this type of plan enables you to release cash as and when you need it.
If you’re contemplating an equity release scheme be sure to seek expert advise first and find out exactly what impact it could have on your tax position.