Putting savings in partners name to reduce tax liability

Sg28

mebu60 said:

Sg28 said:

Yes its a perfectly legitimate way to reduce tax. Many do it. My wife only works part time so she has a massive allowance of tax free interest. Hence the majority of my savings are in accounts in her name. She's my ISA!

Does she know the login id and passwords and whose mobile number is on the accounts? 

By accounts in her name I mean accounts she has personally opened. In fact I dont actually know the passwords for them myself. 

RG2015

mebu60 said:

Sg28 said:

Yes its a perfectly legitimate way to reduce tax. Many do it. My wife only works part time so she has a massive allowance of tax free interest. Hence the majority of my savings are in accounts in her name. She's my ISA!

Does she know the login id and passwords and whose mobile number is on the accounts? 

I would imagine the mobile number must be the wife’s as this is known to third parties.

Login ID and passwords are different and no one apart from the two primary people would know.

mebu60

RG2015 said:

mebu60 said:

Sg28 said:

Yes its a perfectly legitimate way to reduce tax. Many do it. My wife only works part time so she has a massive allowance of tax free interest. Hence the majority of my savings are in accounts in her name. She's my ISA!

Does she know the login id and passwords and whose mobile number is on the accounts? 

I would imagine the mobile number must be the wife’s as this is known to third parties.

Login ID and passwords are different and no one apart from the two primary people would know.

It would seem to be in this case but it doesn't have to be.

Qyburn

RG2015 said:
I would imagine the mobile number must be the wife’s as this is known to third parties.

Login ID and passwords are different and no one apart from the two primary people would know.

Done properly only the account holder would know the password. That may even be a requirement in the bank's conditions. 
I'm not sure I've seen any conditions applied to phone numbers for verification, several banks allow more than one number. I don't recall them requiring that it must be your personal phone that nobody else has access to.
.

ChilliBob

I do this, with some savings and some investment isas. Two things:

1. Be careful to not get confused when dealing with your wife's accounts on her behalf - I did this with fidelity and accidentally signed off as myself, only Christian name, and it triggered some fraud thing we had to spend an hour sorting!

2. Inheritance, if a gift, of say £20k was given, and your partner didn't last 7 years after the gift then I think inheritance tax may be due. Obviously depending on amounts, wills, ages this may or may not be much of a risk. One to keep an eye on though I think - I suspect many people start to do this on their 30s and it becomes a habit, as those decades roll on the risk increases I guess .  Yeah, I know, but of a bleak point but hey ho

Aretnap

ChilliBob said:

2. Inheritance, if a gift, of say £20k was given, and your partner didn't last 7 years after the gift then I think inheritance tax may be due. Obviously depending on amounts, wills, ages this may or may not be much of a risk. One to keep an eye on though I think - I suspect many people start to do this on their 30s and it becomes a habit, as those decades roll on the risk increases I guess .  Yeah, I know, but of a bleak point but hey ho

There's no inheritance tax on gifts to a spouse, any more than there is on bequests to a spouse.

A non-married partner is another matter of course.