Passing savings to a non-taxpayer

Errata

OK - my reply was a bit tongue in cheek too But not the bit about fraud. Banks usual terms and conditions make clear that only the person themselves or whoever has their power of attorney can open the bank account.
The only reason I know this is because someone I know did what you suggest and came very unstuck with the bank about it.

Voyager2002

Fran wrote: »

You are considering giving money to a student and expecting it back? :rotfl:

(Sorry for laughing I'm sure the sensible people above have given you enough info.)

Yes: that is the real problem with the OP's plan. And of course he would not have any legal come-back, should the student decide to treat the money as a gift.

stphnstevey

Banks don't like it, but can't see them worrying much about one person (particularly as they have a little bit more to worry about now!)

I have acted on behalf of my wife many a times over the phone, she justs passes security an says my husband wants a word. She often doesn't quite understand things, so appreciates me dealing with the details.

It's not fraud if your wife knows about it - who are you decieving? Many an accountant, financial advisor and stock broker work on behalf of a third party.

I do actually run it like you said, but never really thought about how easy it would be to transfer the money if there ever was a problem. Also never thought about what to do with the passwords if something happened to me - what do you do if it's not too personal a question?

Although as the bulk of my income is pretty much split between us now through dividends it's a little less important.

jiggy2

stphnstevey wrote: »

I do actually run it like you said, but never really thought about how easy it would be to transfer the money if there ever was a problem. Also never thought about what to do with the passwords if something happened to me - what do you do if it's not too personal a question?

Although as the bulk of my income is pretty much split between us now through dividends it's a little less important.

i use egg money manager and my wife knows the password for that.

Jig

seven-day-weekend

So my husband who is a taxpayer can give me, a non-taxpayer, any savings in his name, and I won't have to pay any tax (assuming they do not take me over my personal allowance)?. Is that legit?

I'm pretty sure it is but just want to make ABSOLUTELY sure.

We have been married for 37 years and have both joint and single accounts.

Cook_County

seven-day-weekend wrote: »

So my husband who is a taxpayer can give me, a non-taxpayer, any savings in his name, and I won't have to pay any tax (assuming they do not take me over my personal allowance)?. Is that legit?

I'm pretty sure it is but just want to make ABSOLUTELY sure.

We have been married for 37 years and have both joint and single accounts.

From a UK perspective the current government has shelved the income shifting legislation. Most of the case law relates to disputes over beneficial ownership on divorce. The Grimm v Newman case is also worth reading.

Essentially the UK does not have lifetime tax on spousal gifts, & these work providing they are gifts.

You live in a country with forced heirship rules & are subject also to the laws of the Kingdom of Spain. Spain may impose tax on the gifts, the income or the assets. You would need to investigate locally.

seven-day-weekend

Thanks, we'll be resident in the UK in the next year or two, I was talking about then.

stphnstevey

jiggy2 wrote: »

i use egg money manager and my wife knows the password for that.

Jig

Does that allow her to access accounts, or does egg money manager do something else?

ie I want to give my wife access should anything happen, but not before!

CLAPTON

stphnstevey wrote: »

Does that allow her to access accounts, or does egg money manager do something else?

ie I want to give my wife access should anything happen, but not before!

not quite sure what you mean

but if you have an account in your sole name
and then die

then it would, in general be a criminal offence for anyone to withdraw money from the account until probate has been obtained.

3under3

johnllew wrote: »

No problem. Do what I do: open an internet account in her name and operate it online yourself. That way, you get the tax advantages without the risk of her spending the money. At the first sign of marital disharmony, transfer to your own account; it can be done in seconds.

That's exactly what I have just done!!