tax allowance

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spirit
spirit Posts: 2,886 Forumite
First Anniversary Combo Breaker Mortgage-free Glee!
in Cutting tax
Hi,

my neighbour has asked me to post a question for him re income tax. They are a married couple - both retired. The husband Pays quite a bit of tax on his pensions but his wife has a small pension of £51 a week so doesn't use up her allowance. is it possible to transfer some of her allowance to him or vice versa to save tax please?

thank you
Mortgage free as of 10/02/2015. Every brick and blade of grass belongs to meeeee. :j

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  • CIS
    CIS Posts: 12,260 Forumite
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    You cant transfer personnal allowances, but could they not transfer some income or savings into her name ?
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • spirit
    spirit Posts: 2,886 Forumite
    First Anniversary Combo Breaker Mortgage-free Glee!
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    thanks CIS, I'll ask them. I don't know if you can have pensions paid into your spouse's name?
    Mortgage free as of 10/02/2015. Every brick and blade of grass belongs to meeeee. :j
  • dunstonh
    dunstonh Posts: 116,558 Forumite
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    You cant have pensions paid in different names. Savings and Investment income can be. She could also pay into a pension (as a single premium upto £3600 gross) and take an income from that. The net return should be around 10% p.a. tax free in her case.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • spirit
    spirit Posts: 2,886 Forumite
    First Anniversary Combo Breaker Mortgage-free Glee!
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    Hi all,

    the thanks button isn't back up and running yet it seems so can I say a big thanks to all respondents and I'm just gonna pop next door.
    Mortgage free as of 10/02/2015. Every brick and blade of grass belongs to meeeee. :j
  • isasmurf
    isasmurf Posts: 1,999 Forumite
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    If either husband or wife were born before 6 April 1935, then they can claim married couples allowance.
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