Tax On Interest On Savings

shanderby

My partner is a non tax payer and I am. Can I legally put the savings in her name and not have to pay tax on the interest, provided the interest doesnt take her over the personal allowance limit?

cheers

Blobby8_2

You can give it to your partner, it then becomes the property of your partner. Dont fall out !

This is akin to making love to a packet of Jacobs.

Fuc4ing crackers.

donquine

shanderby wrote: »

My partner is a non tax payer and I am. Can I legally put the savings in her name and not have to pay tax on the interest, provided the interest doesnt take her over the personal allowance limit?

cheers

Yes, but take into account the below.

As you are unmarried, you currently own 100% of those savings and the associated interest income.

If you put the savings in your partner's name, she would own them 100%, together with the interest income. You would go from legally being entitled to 100% to 0%.

Now, if you were married and that interest was in your name, the courts would probably look to split it 50:50 in the event of a divorce. If you put the interest in your partner's name, again, it would be looked at with a 50:50 starting point. There would be no change in how much you were both entitled to.

This is why putting savings etc in the name of a spouse with a lower marginal rate of tax is good tax planning - and why putting savings etc in the name of a partner with a lower marginal rate of tax is a leap of faith. You have to bear in mind that even if she doesn't try to fleece you, if anything happens to her unexpectedly and there's no will, the money will go to her family, not you.

So it's possible, but there are warnings to take into consideration.