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    • JWhite
    • By JWhite 12th Apr 18, 10:08 AM
    • 810Posts
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    JWhite
    Advice on ISA's in Retirement
    • #1
    • 12th Apr 18, 10:08 AM
    Advice on ISA's in Retirement 12th Apr 18 at 10:08 AM
    We are retired living on state pensions and small private pensions and rental income from our house. My husband still pays tax on his pensions and the 50% share of our rental income, of approx. 1000 per year whilst I have transferred my marriage allowance portion to him as I don't have enough income to reach my personal allowance limit, in order to minimise the tax he pays.

    Would we save any tax by investing in ISA's or what other savings investments could we take to minimise the tax he is paying. TIA
Page 1
    • eskbanker
    • By eskbanker 12th Apr 18, 10:55 AM
    • 8,693 Posts
    • 9,909 Thanks
    eskbanker
    • #2
    • 12th Apr 18, 10:55 AM
    • #2
    • 12th Apr 18, 10:55 AM
    Would we save any tax by investing in ISA's or what other savings investments could we take to minimise the tax he is paying.
    Originally posted by JWhite
    ISAs are a tax umbrella under which you can shelter cash deposits or stocks and shares, but if your income is from pensions and property rental then neither of those is particularly compatible with ISAs - do you have a separate chunk of cash savings as well perhaps?

    Alternatively there is a dedicated 'cutting tax' board on here that may bring more responses rather than focusing on ISAs: http://forums.moneysavingexpert.com/forumdisplay.php?f=22
    • mikael
    • By mikael 12th Apr 18, 10:18 PM
    • 316 Posts
    • 145 Thanks
    mikael
    • #3
    • 12th Apr 18, 10:18 PM
    • #3
    • 12th Apr 18, 10:18 PM
    We are retired living on state pensions and small private pensions and rental income from our house. My husband still pays tax on his pensions and the 50% share of our rental income, of approx. 1000 per year whilst I have transferred my marriage allowance portion to him as I don't have enough income to reach my personal allowance limit, in order to minimise the tax he pays.

    Would we save any tax by investing in ISA's or what other savings investments could we take to minimise the tax he is paying. TIA
    Originally posted by JWhite

    It sounds like your are interested in saving Tax. The most obvious way of saving tax is to allocate the rental income you receive to you. You can do a combination of changing the ownership shares of your house and changing the share of rental income you both receive.
    • JWhite
    • By JWhite 13th Apr 18, 8:46 AM
    • 810 Posts
    • 68 Thanks
    JWhite
    • #4
    • 13th Apr 18, 8:46 AM
    • #4
    • 13th Apr 18, 8:46 AM
    Yes we do have cash savings so I will take a look at the thread you suggest, thanks.
    • JWhite
    • By JWhite 13th Apr 18, 8:49 AM
    • 810 Posts
    • 68 Thanks
    JWhite
    • #5
    • 13th Apr 18, 8:49 AM
    • #5
    • 13th Apr 18, 8:49 AM
    It sounds like your are interested in saving Tax. The most obvious way of saving tax is to allocate the rental income you receive to you. You can do a combination of changing the ownership shares of your house and changing the share of rental income you both receive.
    Originally posted by mikael
    Can you be a bit more explicit on changing the share of rental income we receive. I did know about changing the ownership of the house just to me as the lowest income person but I don't think my husband would want to do that and in any event we have a trust set on the property in the interests of our two children 50% each on our individual deaths so would probably invalidate that or couldn't be done, so wouldbe more interested in changing the share of rental income if that were to change the tax liability, if possible.
    • Dazed and confused
    • By Dazed and confused 13th Apr 18, 9:12 AM
    • 3,288 Posts
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    Dazed and confused
    • #6
    • 13th Apr 18, 9:12 AM
    • #6
    • 13th Apr 18, 9:12 AM
    Would we save any tax by investing in ISA's or what other savings investments could we take to minimise the tax he is paying. TIA

    Are you aware that upto 6,000 per year of taxable interest could potentially be taxed at a 0% tax rate?

    As your husband is paying some tax on his pensions he won't be able to get the benefit of the full 6,000 but it will be at least 1,000.

    Roughly how much is the total of his state pension, small private pensions and his hsarw of the rental income?
    • JWhite
    • By JWhite 13th Apr 18, 9:18 AM
    • 810 Posts
    • 68 Thanks
    JWhite
    • #7
    • 13th Apr 18, 9:18 AM
    • #7
    • 13th Apr 18, 9:18 AM
    ISAs are a tax umbrella under which you can shelter cash deposits or stocks and shares, but if your income is from pensions and property rental then neither of those is particularly compatible with ISAs - do you have a separate chunk of cash savings as well perhaps?

    Alternatively there is a dedicated 'cutting tax' board on here that may bring more responses rather than focusing on ISAs: http://forums.moneysavingexpert.com/forumdisplay.php?f=22
    Originally posted by eskbanker
    Did as you suggested but couldn't see anything that related to my situation. I already transferred the Marriage Allowance as stated above which is suggested in that thread and am already registered for Self Assessment which is the other main subject there. I will perhaps research on the internet if there is any help there. Thanks.
    • eskbanker
    • By eskbanker 13th Apr 18, 9:46 AM
    • 8,693 Posts
    • 9,909 Thanks
    eskbanker
    • #8
    • 13th Apr 18, 9:46 AM
    • #8
    • 13th Apr 18, 9:46 AM
    I wouldn't necessarily give up on the idea of people on here offering assistance but to be honest you'd need to give more to go on, in terms of details of how much each of you earn from the various revenue streams, how much of a savings pot you have (and where it's currently held), how much tax each of you pays, etc, etc, as these will paint a more accurate picture and potentially spark ideas.

    Fully understand if you don't want to share all that though, but it's quite difficult for people on here to join the dots with limited information....
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