Ifap has launched TaxAction 2004 – a campaign to increase awareness of the amount of wasted tax throughout the UK, which it says is around £128m.
The campaign aims to show how careful tax planning means that couples could save money by transferring their assets to low or non-taxpaying spouses. It says the amount of couples failing to do so has risen since 2003 by 47 per cent.
According to the research, the average deposit held by individuals in the UK is £10,602. If a higher rate taxpaying spouse transferred two thirds of this sum, £6,997, into their partner's name – assuming the partner has no income currently and therefore no tax liability – and if this sum was then invested in an instant access account paying 3 per cent gross, the couple could make a gross saving of £84 a year.
Ifap chief executive David Elms says: “Visiting an IFA to assess your finances and discuss where you might save tax is hugely valuable, especially as the process of reducing the amount of tax you waste through asset transfer and other efforts, is often a very simple process.”