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Can I avoid tax on interest?
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keith_scarfe
Posts: 9 Forumite
I am sure there is a rule against this but I thought I would ask...
My wife doesn't earn anything (zero income) but I obviously do. Can I put all our savings into her name (her own personal bank account) and thus not pay tax?
I guess there must be some rule about being married to not allow this. Can anyone give me some details (or where to look to read myself)
Thanks.
Keith.
My wife doesn't earn anything (zero income) but I obviously do. Can I put all our savings into her name (her own personal bank account) and thus not pay tax?
I guess there must be some rule about being married to not allow this. Can anyone give me some details (or where to look to read myself)
Thanks.
Keith.
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Comments
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as far as I'm aware, every person is allowed to earn roughly 5,000 a year without tax. Interest is classed as earnings, so if your missus doesn't earn anything, put all money in savings accounts in her name and any interest will eat into her 5,000 a year but beware if she claims benefits or anything they may wonder where she is getting her money from and assume she is saving money from an employment or other and cancel any benefits she may receive.0
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He Keith,
What you describe is perfectly legal (we do it!). Spouses can transfer any amount of money between themselves without incurring tax. Furthermore, your wife can earn (this includes interest) up to approx GBP6k without paying tax.
Your wife should open savings a/c's in her own name, and complete form R85 from HMRC website, and submit to the bank or BS.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 -
Wow thanks for that, I didn't think this would be legal. I am on to it.
Yep got to fill in a R85 form and send to bank.
Cheers for that.0 -
I'm pretty sure Martin recommends this somewhere in one of his savings articles! So go for it!You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.0
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remember she must fill in a R85 for each account
you mention a bank... they rarely have the best svings rate so best to look around
presumably you have used your ISA allowance too0
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