Gift to my wife

TOURER_2

Hi new to site dont know if anybody can answer this one I have a bond coming out shortly and want to re invest it and avoid having to pay the 20% tax on interest.

I am thinking of giving the money to my wife as she does not pay income tax, but runs a small business from which she takes a very small income.

With the interest on the bond this would still not make her liable for income tax.

She does a tax return every year and obviously would have to declare the interest on this bond, but I am a bit concerned that HMRC may tax her on the lump sum she has invested as a form of income because I have given it to her.

Linton

Gifts between spouses are not subject to any HMRC controls. A gift isnt "income" and so isnt taxed anyway.

So you have no cause to worry. Except for the fact it's her money now to do with as she pleases!

Jonbvn

If the bond is in your name ATM, I think it might be difficult to change it now. However, once the money is available to you, money transferred between spouses is of no interest to HMRC. In our case, OH (a non tax payer) is a rich lady, and I (a 40% tax payer) am a pauper . Of course this annoys a lot of guardiansitas, which makes me feel warm inside.

TOURER_2

Thanks for your help didnt want the taxman getting his hands on any more of my hard earned cash.