Reducing tax bill through marriage

crwk78

Hi,

My parents have some Capital Redemption Bonds that they are about to sign over to me. I pay 40% tax and my wife pays 20% tax. Can they transfer the bonds to my wife and can my wife then gift them to me once she’s paid the required tax on them?

Thanks in advance for any help

Jeremy535897

You may find this instructive:
https://www.mandg.com/wealth/adviser-services/tech-matters/investments-and-taxation/planning/tax-planning-uk-bonds#ownership
I assume the idea would be for your wife to hold the bonds to maturity, and pay tax on the chargeable event, and then give you the cash, as if she gives them to you before then, nothing is achieved. As the proceeds will presumably produce income, why ask her to give you the money?