Buy ISA in wifes name?

tin_cup_2

I was wondering whether I could buy an ISA in my wife's name as well as my own?

I'm a basic rate tax payer and my wife stays home and has no income.

TIA

Tin Cup

fengirl_2

Yes, you should be making full use of your tax free allowances

tin_cup_2

Thanks for your pompt reply Fengirl, I read somthing about a tax liabity on gifts of £3000+ and was concerned the additional £600 might be taxed.

Tin Cup

Rikki

Your married what's your is her's .

You can both use the full ISA allowance or in these times you could look a higher paying accounts for your wife to put money as she is tax exempt.

JerryC

Your wife can buy an ISA, but it will only be a tax advantage if in future she becomes liable to pay income tax. Any amount can be transferred between husband and wife with no tax liability.

In the mean time if your wife's income is less than the personal allowance, all your family savings should be in her name, and she should get interest tax free (fill in form R85). You may find non ISA savings accounts paying better rates than ISAs

Pee

Although be a bit careful about putting all the savings in your wife's name, just in case.

dzug1

tin_cup wrote: »

Thanks for your pompt reply Fengirl, I read somthing about a tax liabity on gifts of £3000+ and was concerned the additional £600 might be taxed.

Tin Cup

You've taken what you read out of context I'm afraid.

The tax liability is only potential against future inheritance tax - and it doesn't apply to gifts between spouses anyway.

And technically YOU cannot buy an ISA in your wife's name - she has to apply for it herself.

And to reiterate what others have said - if she's a non tax payer there are better investments.