Any help appreciated

Gambo47

I am retired and pay tax on my private pension (<£20k as not yet on state pension), my wife just transferred some of her tax free allowance to me so I will be receiving a rebate of over £500 for the last two years , THANKS TO MARTIN!!
BUT
after an imminent inheritance we will be putting as much into ISAS as we can before and after April 6th, followed by the remainder into savings accounts. As my wife is on a small pension of just over £7k,  she will have the tax free interest on two ISAS but I am struggling to understand how we then take advantage of the allowance she can get due to her income being lower than the standard allowance. Can Martin or anyone please advise on what she is allowed to have untaxed , does she lose the married allowance transferred to me and do we have to fill in a self assessment for this to be done properly?

BrilliantButScary

Gambo47 said:

I am retired and pay tax on my private pension (<£20k as not yet on state pension), my wife just transferred some of her tax free allowance to me so I will be receiving a rebate of over £500 for the last two years , THANKS TO MARTIN!!
BUT
after an imminent inheritance we will be putting as much into ISAS as we can before and after April 6th, followed by the remainder into savings accounts. As my wife is on a small pension of just over £7k,  she will have the tax free interest on two ISAS but I am struggling to understand how we then take advantage of the allowance she can get due to her income being lower than the standard allowance. Can Martin or anyone please advise on what she is allowed to have untaxed , does she lose the married allowance transferred to me and do we have to fill in a self assessment for this to be done properly?

This should tell you what you need to know:

https://www.moneysavingexpert.com/savings/tax-free-savings/

Have you thought about putting money into Premium Bonds, as any winnings are tax free? 

You may have to put money into a savings account in just your wife's name to take advantage of her income being less than the personal tax allowance currently.

eskbanker

Gambo47 said:

Can Martin or anyone please advise on what she is allowed to have untaxed , does she lose the married allowance transferred to me and do we have to fill in a self assessment for this to be done properly?

Yes, the £1260 (equivalent to £252 of tax at 20%) is taken out of her allowance and added to yours, so she's left with £11,310 if starting from the normal personal one.

No self-assessment needed, unless meeting any of the other criteria for that....

Gambo47

thanks for that very helpful, makes it much clearer .