IFA Promotion estimates £185 million could be saved from the taxman simply by considering whose name...
IFA Promotion estimates £185 million could be saved from the taxman simply by considering whose name savings are made in.
The claim that if UK taxpayers transferred savings accounts to non-taxpaying spouses the average couple could make a saving of £107 each year is made in Wasted Tax 2000, research conducted by independent agency RAKM for IFA Promotion.
This action would mean the tax liability on the savings is lower, or even zero.
IFA Promotion's David Elms says this is a simple tax saving if you husband or wife is a non-taxpayer or pays a lower rate than you do.
"Simply transferring savings or investments to your non-taxpaying partner could save you a considerable amount," Elms says.
According to the research, the average deposit held by individuals in the UK is £10,709.
If a higher rate taxpaying husband transferred two thirds of this sum - £7,140 - into his wife's name (assuming she has no income currently and therefore no tax liability), and the sum was invested in an instant access account paying 6.5% gross the couple could make a gross saving of £107 a year.
To request a free guide call the IFA Promotion hotline on 0800 085 3250 or visit www.unbiased.co.uk
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