£1000 interest limit

Barrysh

Hi. Looks like I'm going to exceed the £1000 limit on savings interest this year. The wife will only use a couple of hundred pounds of her allowance. Is there any way I can use part of hers this financial year. Maybe have to look at evening it out for future years if not. Thanks.

booneruk

You'd need to transfer her some of the money in order to earn interest against her allowance

Bookworm105

no, the interest threshold is personal, not shareable 

are you and your wife in a position to use the marriage allowance transfer rule?

Dazed_and_C0nfused

Barrysh said:

Hi. Looks like I'm going to exceed the £1000 limit on savings interest this year. The wife will only use a couple of hundred pounds of her allowance. Is there any way I can use part of hers this financial year. Maybe have to look at evening it out for future years if not. Thanks.

Have you definitely fully understood how Marriage Allowance, the savings starter rate band and savings nil rate (aka Personal Savings Allowance) all work?

It may be your wife can utilise Marriage Allowance without it increasing her tax liability and you would then save (upto) £252.

If you provide details of your wife's (taxable) income it should be simple to check.

You need to split income into earning/pension and then separate figure for interest.

Albermarle

Barrysh said:

Hi. Looks like I'm going to exceed the £1000 limit on savings interest this year. The wife will only use a couple of hundred pounds of her allowance. Is there any way I can use part of hers this financial year. Maybe have to look at evening it out for future years if not. Thanks.

Are you aware that low/non earners can earn more than £1000 interest and not pay tax?
Also interest on money in a cash ISA savings account is not taxable.