Taxpayers could save a total of £87m across the UK by
transferring assets to a non-taxpaying spouse, according to research
by IFA Promotion.
IFAP says if the spouse is a non-taxpayer, the tax liability on
savings can be cut to a much lower level, possibly even zero.
Its research shows the average deposit held by individuals is
£9,935. If the spouse is in the higher-tax rate bracket, by
transferring two-thirds of this amount into their partner's name and
investing it in an instant-access account paying 2.55 per cent gross,
the couple can make a saving of £67 a year.
This depends on the spouse having no current income and therefore no
tax liability.
Chief executive David Elms says: “If your husband or wife is a
non-taxpayer or pays a lower rate than you do, taking a moment to
transfer savings and investments to your partner could save you a
considerable amount.
“Visiting an independent financial adviser to discuss where you might
save tax is hugely valuable, especially as so often the process of
reducing the amount of tax you waste is very simple.”
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