Investing Equity
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mjc_3
Posts: 2 Newbie
in Cutting tax
Hi All, This september my wife is hopefully able to take a course ( Hons Degree ) which will enable her to earn a lot more money than she can with her current qualifications,the course is 70 miles away from where we live,so we are hoping to sell our house,invest the money,and rent for a while (6-12 months) until we find the right house in that area to buy,i'd also be much closer to my own work.Can anyone tell me could the equity from our house (250 k) be invested in solely my wifes name to avoid paying 40% tax (i am a higher rate taxpayer).Any helpful points of view would be much apprciated Thanks Mike
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I've moved this in here as I think it's more relevant and you should get more replies0
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As I understand it, husbands and wives are taxed separately these days. This means they each get their own tax allowance. So, if you are happy making a 'gift' to your wife of the house (or you half share of it) then go ahead.
If you have any other investments in your own name (or joint names) you may wish to pass them to your wife as well.
But don't forget to make use of your own ISA allowance (as well of your wife's) when investing the 250k.
Please note: This is my understanding of tax legislation as a layman.0 -
That's right - if you give your share of the equity to your wife and then she invests it it will be taxed in her name. Just remember that you have given her the money - it is legally hers!0
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HI All, Thanks for the advice, i guess it raises a further question - how much do i trust my wife? :rolleyes:0
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