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Help please to reduce tax liability on savings
Stavros_3
Posts: 1,288 Forumite
in Cutting tax
OK here goes, I am married, I am a 22% tax payer and have 25k in savings in my savings account
Mrs Stavros is a 40% tax payer and has a few grand more than me in her own account. How do we reduce the amount of tax she pays on her savings, we are both maxed out on tax free savings, not interested in premium bonds etc. Can she legally transfer any of her savings to my account etc. advice most appreciated
Mrs Stavros is a 40% tax payer and has a few grand more than me in her own account. How do we reduce the amount of tax she pays on her savings, we are both maxed out on tax free savings, not interested in premium bonds etc. Can she legally transfer any of her savings to my account etc. advice most appreciated
Liquidity is when you look at your investment portfolio and **** your pants
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OK here goes, I am married, I am a 22% tax payer and have 25k in savings in my savings account
Mrs Stavros is a 40% tax payer and has a few grand more than me in her own account. How do we reduce the amount of tax she pays on her savings, we are both maxed out on tax free savings, not interested in premium bonds etc. Can she legally transfer any of her savings to my account etc. advice most appreciated
Yes she can - but they then legally become your savings. She is making a gift to you of the amount.
Depends how much you trust each other....0 -
100% dzug, how much can she transfer?Liquidity is when you look at your investment portfolio and **** your pants0
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As much as she likes. But ... sensibly, just enough to keep you under the 40% threshold. Bear in mind that's all your earned income + gross interest from savings etc.
Consider investing some of her money (after equalising, as above) in NS&I index linked Certificates .... which are tax free.If you want to test the depth of the water .........don't use both feet !0 -
If you had a joint account, any interest income would be half yours and half hers, but she will still have control over it.0
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The best way (IMHO) is to use index linked certs for most of your savings. You can put 15k each into 3-yr & 5-yr certs, allowing you to save 60k in one go. It is also possible to put them into trust for each other (but gets complicated). 100% tax-free, & guaranteed by the treasury.
Consider putting a small amount into a instant access savings a/c in your name for emergencies.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
£7k ISA allowance each per tax year and index linked certs are tax free. as mentioned. Low yield unit trusts or ZDPs can help as can pension contributions.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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emeraldbugle wrote: »If you had a joint account, any interest income would be half yours and half hers, but she will still have control over it.
Not always. Generally it is 50/50 but you can make a statement that it's whatever split you want.0 -
Smiler is not correct. You cannot make a declaration (on form 17) for bank accounts. These are automatically 50:50.0
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