Giving money to my wife

info_maniac

I am a higher rate tax payer. My wife does not work at present so she is not having any taxable income. I was thinking of opening an instant access savings account and a cash e-ISA in her name to take advantage of tax-free interest on savings. However, I have a few questions:

1/ If I give my money to my wife and she earns tax-free interest on it. Does this voilate any HMRC rules? Are there any other tax implications I need to be aware of?

2/ Also, I may need to tranfer the principal amount (+ any interest earned) back to my accounts in future. Will this be allowed OR this will be a voilation of HMRC rules?

Lokolo

1. No. Many people do this. However, she could then run off with the money. Do you really trust your wife?

2. I wouldn't think so, however, not 100% on this. And there could be the problem of above (she could not give you back the money lol)

info_maniac

Lokolo wrote: »

1. No. Many people do this. However, she could then run off with the money. Do you really trust your wife?

2. I wouldn't think so, however, not 100% on this. And there could be the problem of above (she could not give you back the money lol)

Yes, I will need to trust my wife to beat the taxman.

Again, what about transferring money back to my accounts, when I think I (my wife) have earned sufficinet interest on it.

debbie42

There are no restrictions on transferring cash between spouses: either way is perfectly acceptable by HMRC and is a valid way of minimizing tax liabilities.

Jonbvn

info_maniac wrote: »

Yes, I will need to trust my wife to beat the taxman.

Again, what about transferring money back to my accounts, when I think I (my wife) have earned sufficinet interest on it.

Spouses can transfer any amount of money (or other assets) to/from each other without incurring tax.

ad44downey

Don't give it to her. She'll only waste it buying more shoes.

debbie42

Jonbvn wrote: »

Spouses can transfer any amount of money (or other assets) to/from each other without incurring tax.

...don't tell my husband this, he thinks a handbag and shoe tax is perfectly reasonable

debbie42

ad44downey wrote: »

Don't give it to her. She'll only waste it buying more shoes.

Waste it? On shoes???? Does not compute.