Married Couple Savings Tax Saving Tip

stphnstevey

How much would that cost?

MarkyMarkD

Chrismaths wrote:

You can't. The split of income has to reflect the split of ownership. It can't be arbitrary. You could however gift the entire ownership of the house to the wife to reduce your taxable income, but doing that might be costly.

It wouldn't cost much, in most cases, but could cause issues with the mortgage if you have a joint mortgage secured on the property and the lower tax-paying spouse doesn't earn enough to satisfy the lender.

danchloe

My Code is - 95 L,
& Hubby is - 498L.

We have just opened joint current and savings accounts with halifax, (proceeding);

Should i be looking to put savings (and current) ?? in my account name only then- is it that much better.

dont understand this lot

ta grannyblonde

MarkyMarkD

The tax codes aren't particularly relevant.

What matters is the marginal tax rate which each of you is paying.

If (like most couples) you both pay basic rate tax, it makes no difference at all who has the savings.

If (like a large minority of couples) one pays higher rate tax, or one pays no tax, whilst the other pays basic rate tax, there IS a definite benefit from moving savings into the lower tax-paying spouse's name.

save007

MSE_Martin wrote:

Also if you're not married then it is arguable that if you were to give someone £10,000 let them earn interest and then they later gave it back for you to use - this is deliberate tax evasion.

Martin

What is the situation for a non-married couple renting a property together? Is it considered fine for the higher tax rate payer to put his/her savings under the name of the lower tax rate payer?

MarkyMarkD

Martin's answer answered that question clearly enough. The fact you share a house is irrelevant - if you are not married, you CANNOT transfer assets between yourselves as a means of tax mitigation (particularly if it's not a permanent gift, but a tax evasion device).

save007

MarkyMarkD wrote:

Martin's answer answered that question clearly enough. The fact you share a house is irrelevant - if you are not married, you CANNOT transfer assets between yourselves as a means of tax mitigation (particularly if it's not a permanent gift, but a tax evasion device).

ok. how about if the persons formed a civil partnership and were not married?

Cook_County

Putting an asset in a spouse's name may not change the beneficial ownership. This is complex legal area but put simply is the underlying 'true' ownership that a judge would look too if you were to divorce.

Such transfers may be caught by the settlements legislation, so I would suggest professional advice if the amounts are substantial or property is involved.

meno_2

is this still ok to do being an old topic? and what about transfering to my daughters account tax free

bbelton

Does this also apply if the spouse is a non taxpayer

ie. If I am a higher rate tax payer I can save in my spouces name and receive any interest tax free ???