Tax on Savings (Help!)

Plasticman

Hi Folks,

My wife is self employed and has had to give up work due to ill health She is unlikely to return to work for at least 12 months. We have about £7,000 in a savings account (in my name only) which we plan to spend on home improvements in May of next year.

She did not work from April 2003 to November 2003 then became self employed and made approx £2000 profit during the 2003/4 tax year. The doctor signed her off sick in September of this year and she will not have earned enough to pay tax during this financial year either.

So my question is, would we be able to transfer the savings into an account in my wife’s name and not pay tax on the interest? We already both have ISA's although we have not paid anything into my wife's ISA this year.

Any advice gratefully received!

MarkyMarkD

Absolutely, YES!

deemy2004

Hi Folks,

My wife is self employed and has had to give up work due to ill health  :(  She is unlikely to return to work for at least 12 months.  We have about £7,000 in a savings account (in my name only) which we plan to spend on home improvements in May of next year.

She did not work from April 2003 to November 2003 then became self employed and made approx £2000 profit during the 2003/4 tax year.  The doctor signed her off sick in September of this year and she will not have earned enough to pay tax during this financial year either.

So my question is, would we be able to transfer the savings into an account in my wife’s name and not pay tax on the interest?  We already both have ISA's although we have not paid anything into my wife's ISA this year.

Any advice gratefully received!

When you open an account request form R85

As long as her total income for 04/05 is likely to be less than her tax free allowance then she would get the interest gross

Though remember its for 04/05 if after March 05 she starts earning then she would need to tell the BS or bank

Testee

The R85 is available as a download from here:-

https://www.claimyourtaxback.com

Good luck

deemy2004

Good link !

As it also mentions claiming tax back if your in the lower 10% band.