Interest on inherited savings

baxteral · 1 November 2009 at 1:43PM

My husband will shortly inherit some money if I invest it in my name can we avoid paying tax at higher rate as he is a higher rate tax payer.

Lokolo · 1 November 2009 at 1:45PM

If you aren't also a higher rate tax payer yes.

But the money will then be yours, not his. So he must trust you a lot.

Baldur · 1 November 2009 at 1:55PM

Depending on the size of the inheritance and, therefore, the interest generated by it, your own tax position could also change.

G_M · 1 November 2009 at 2:14PM

Also depending on the amount, his 'gift' to you could be liable to Inheritance tax if he doesn't survive 7 years.

surreysaver · 1 November 2009 at 2:21PM

G_M wrote: »

Also depending on the amount, his 'gift' to you could be liable to Inheritance tax if he doesn't survive 7 years.

Not if you're married it won't. Spouses (and civil partners) can transfer money between each other without any tax penalties.

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