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Tax Efficient Child Mainenance ?
*David*
Posts: 13 Forumite
in Cutting tax
I'm a 40% tax payer (just), and every month I pay about 18% of my net income to my ex-wife in an amicable arrangement. What annoys me is that I have already paid 40% tax on this ammout, whereas my ex-wife would not be in this tax bracket.
Is there a way of paying mt ex-wife "from source" and before I am taxed and for her to then pay 20% tax on that amount - hopefully we could be better off. I mentioned this to the solicitor dealing with the divorce and he said he did not think it was possible.
Any advice woud be appreciated.
David
Is there a way of paying mt ex-wife "from source" and before I am taxed and for her to then pay 20% tax on that amount - hopefully we could be better off. I mentioned this to the solicitor dealing with the divorce and he said he did not think it was possible.
Any advice woud be appreciated.
David
0
Comments
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Tax relief for maintenance payments was abolished many years ago.£705,000 raised by client groups in the past 18 mths :beer:0
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If you were still together with your ex you would still be maintaining your child from taxed income. Assuming you were born after 6th April 1935 you wouldn't have married couples allowance either to reduce your tax liability. So monetary wise you would be in exactly the same position as now.
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