Where else can I save??

badger09

fidaa said:

My other half earns less than 12k per annum.

Can I give her some of my earnings which she can then put into her own ISA?

If ‘other half’ means wife or Civil Partner, then yes. 

You can give her £20k to put in her ISA. 

You can also give her money to pay inter her works pension or a SIPP
You can also give her money to save in an account in her name
NONE of the above will affect the tax you pay on your earnings, but will mean that your wife is using her tax allowances to full advantage. 

Thus money will obviously then be hers. 

Sg28

fidaa said:

My other half earns less than 12k per annum.

Can I give her some of my earnings which she can then put into her own ISA?

Are you married?

If so then yes you can give her as much money for her to save as you wish. 

The risk is the money is legally hers once you put it in her name. If you spit up in the future she can take it. 

As she earns less than 12k it means she has the full 0% tax starter rate for savings of £5000 and then the £1000 tax free allowance on top. So she can earn £6000 in interest per year tax free. So you dont need to consider ISAs or premium bonds until this is used up

My wife earns a similar amount so I send her my savings.

ColdIron

fidaa said:

My other half earns less than 12k per annum.

Can I give her some of my earnings which she can then put into her own ISA?

There are only so many ways of saying the same thing

ColdIron said:

fidaa said:

Sarahspangles said:

A couple can have two lots of premium bonds plus two sets of ISA, personal tax and personal savings allowances. But if you’re single, coupling up just for tax purposes is a bit extreme.

Yes but I can't give money to my other half to put into isa etc right?

Wrong. You can gift your spouse/partner for anything, an ISA, savings accounts (to use their unused allowances) etc. There is no gift tax in the UK. It becomes their money rather than yours

You haven't commented much about pensions, for many, especially those paying higher rate tax, they are a no brainer. Generous tax relief (basically your 40% tax returned). If your employer offers salary sacrifice it will reduce your (apparent) income and create a higher buffer before the £100k threshold

badger09

ColdIron said:

There are only so many ways of saying the same thing

Ever feel you’re wasting your time? 

fidaa

Sg28 said:

fidaa said:

My other half earns less than 12k per annum.

Can I give her some of my earnings which she can then put into her own ISA?

Are you married?

If so then yes you can give her as much money for her to save as you wish. 

The risk is the money is legally hers once you put it in her name. If you spit up in the future she can take it. 

As she earns less than 12k it means she has the full 0% tax starter rate for savings of £5000 and then the £1000 tax free allowance on top. So she can earn £6000 in interest per year tax free. So you dont need to consider ISAs or premium bonds until this is used up

My wife earns a similar amount so I send her my savings.

Thank you.

If you gift money does that add to income to the person getting the gift?

E.g. wife earns 5k and you gift her 3k is that 8k total income or is gift not counted

fidaa

does 3k limit apply to gifts for wife?

https://www.gov.uk/inheritance-tax/gifts

Sg28

fidaa said:

does 3k limit apply to gifts for wife?

https://www.gov.uk/inheritance-tax/gifts

It doesn't matter, spouse's are exempt from inheritance tax. 

fidaa

(Removed by Forum Team)

Thanks but does the gift add to her total income?

E.g. if she earns 5k in a tax year then I give 3k gifts does she tehnically earn 8k a year?

[Deleted User]

Hi,

it's not earnings.

jimjames

You've mentioned in the post that you've maxed out savings but if you have that amount of savings do you need to still keep putting more money into cash. Investments like S&S ISA might be worth looking into once you have sufficient cash savings for your needs.