We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Sharing income

Options
Hi,
I am about to receive a pension lump sum and will initially put it in a joint bank account in the names of me and my wife.
I intend to put £20000 of it in an ISA in my name. Can my wife buy a similar ISA from the joint account, or does that incurr tax penalties?
Thanks.

Comments

  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    The only time tax comes into play on "gifts" is if you die within 7 years however gifts between spouses are ignored for IHT purposes so it's totally irrelevant. 

    Secondly, legally with a joint account you each own 100% of whatever is put in there so as soon as it was deposited it became as much her money as yours. 

    Yes she can choose to put it into an ISA without any tax implications
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.9K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.