Moving my savings to my wife who earns less than PSA

NickCmax1

What are the rules in terms of giving my savings that are in my name in an ISA to my wife, who earns £10k a year so that she can put that in to a high interest account (Atom bank) and not pay tax on it? Is that a valid way to benefit from her lower tax status (I am in the highest tax bracket) ?

Dazed_and_C0nfused

Are you happy with the risk of losing your savings (they would be your wife's not yours should you proceed).

If she earns £10k she has spare Personal Allowance and the savings starter rate of tax (0%) before the PSA rate band kicks in.

So potentially £8.5k in interest before any tax would be payable.

Albermarle

If your savings are in an ISA, you are not paying tax on them anyway . You can always transfer to another ISA if it has better interest rates .

Although non ISA accounts tend to have a better interest rate than ISA ones , but not by much 

NickCmax1

Albermarle said:

If your savings are in an ISA, you are not paying tax on them anyway . You can always transfer to another ISA if it has better interest rates .

Although non ISA accounts tend to have a better interest rate than ISA ones , but not by much 

yes i am not paying tax, but the rate is next to nothing. If I move all of the money to her she can whack it all in to Atom bank and get 0.5% tax free? 
I am aware I can "lose" this money as it will be in her name, but am happy to run that risk

NickCmax1

EDIT: its about £30k in savings (not a lot) but she could save all of that tax free and at a higher rate than my ISA

Albermarle

NickCmax1 said:

Albermarle said:

If your savings are in an ISA, you are not paying tax on them anyway . You can always transfer to another ISA if it has better interest rates .

Although non ISA accounts tend to have a better interest rate than ISA ones , but not by much 

yes i am not paying tax, but the rate is next to nothing. If I move all of the money to her she can whack it all in to Atom bank and get 0.5% tax free? 
I am aware I can "lose" this money as it will be in her name, but am happy to run that risk

You could transfer your isa to Leeds building society or Paragon bank, both offering 0.55% for instant access ISA

Instant & Easy Access Cash ISAs Up to 0.60% Variable (moneyfacts.co.uk)

Keep_pedalling

If these are long term savings why cash?, if not you are right cash ISAs are just about pointless. The alternative would be premium bonds if you are not already maxed out.

csgohan4

why not consider premium bonds,has a slight;y higher payout rate, albeit by chance