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Tax arbitrage in savings accounts
MrFund
Posts: 6 Forumite
Hi Everyone
Just trying to get a better sense of how tax is treated for savings accounts.
I currently work (and I am taxed at the highest bracket). My wife does not work. If I open a non-ISA savings account for my wife, and we transferred all of our savings (held in my name) over to her name and it was earning interest it would be treated on her lower tax base? Is there any other hitches I might be missing?
Thanks!
Just trying to get a better sense of how tax is treated for savings accounts.
I currently work (and I am taxed at the highest bracket). My wife does not work. If I open a non-ISA savings account for my wife, and we transferred all of our savings (held in my name) over to her name and it was earning interest it would be treated on her lower tax base? Is there any other hitches I might be missing?
Thanks!
0
Comments
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Hi Everyone
Just trying to get a better sense of how tax is treated for savings accounts.
I currently work (and I am taxed at the highest bracket). My wife does not work. If I open a non-ISA savings account for my wife, and we transferred all of our savings (held in my name) over to her name and it was earning interest it would be treated on her lower tax base? Is there any other hitches I might be missing?
Thanks!
This is perfectly legal. My non-taxpayer wife is quite wealthy, whereas I am a pauper;)In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
The only potential hitch is that the money is then solely in her name. As long as you're happy with that, it's a perfectly legal way to minimise tax as a couple.Hi Everyone
Just trying to get a better sense of how tax is treated for savings accounts.
I currently work (and I am taxed at the highest bracket). My wife does not work. If I open a non-ISA savings account for my wife, and we transferred all of our savings (held in my name) over to her name and it was earning interest it would be treated on her lower tax base? Is there any other hitches I might be missing?
Thanks!I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
Yes you must trust your wife.0
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