will my wife pay any tax?

sam1970

i am sure this question will sound very daft to many experts here but i really would like to know the answer. i ma a high tax payer and i have got a saving account. a friend of mine suggested that i transfer all my savings into a new account in my wife's name as she does not work (housewife). my question is will she have to pay any tax on the interest because of my income? thanks for the advice

oldfella

0% on the first £6475, then 10% on the next £2440

dzug1

And remember that if the savings are in your wife's name they are hers, not yours, and she can do what she likes with them.

OK if you trust her, but a point to bear in mind.

sam1970

thank you guys....i know that you should never trust a woman but i will take my chances:rotfl:

BiggaThanBen

She will need to fill in R85 form and send it to the bank to receive gross interest

joemardo1

was just wondering if the tax people would look on this as tax avoidance, and as regards the r85 form could the mere fact of submitting this form to the tax people start a full tax investigation

Joe

oldfella

was just wondering if the tax people would look on this as tax avoidance, and as regards the r85 form could the mere fact of submitting this form to the tax people start a full tax investigation

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no - you are within your rights to transfer between husband and wife, and you have every right to arrange your affairs to reduce your tax

tax avoidance is legal - tax evasion is not

evenasus

oldfella wrote: »

0% on the first £6475, then 10% on the next £2440

And 20% on anything above £6475.;)

Apart from an ISA all our savings are in my name as my husband is in the 40% tax bracket.
Well, we have been married for over 40 years, so I suppose he must trust me by now.

oldfella

And 20% on anything above £6475.

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if you have no earned income in this bracket, you pay 10% on the next £2440

withnell

Because they're married, in any divorce proceedings, whose account it's in would only be a minor point, and the op would be able to show when the transfer occurred

mr_fishbulb

withnell wrote: »

Because they're married, in any divorce proceedings, whose account it's in would only be a minor point, and the op would be able to show when the transfer occurred

Doesn't stop her from buying shoes with it