Taxpayers who don’t want to pay over the odds should consider putting their savings in an account belonging to their non-taxpaying spouse, a newspaper says.
The report, from the Scotsman, says that asking a spouse to open a savings account for you could save couples £113 million nationwide.
Hazel Bowman, a tax partner at Mazars in Scotland, told the Scotsman: “Husbands and wives are taxed independently, but transfers between them are subject to a favourable tax regime.
“If one spouse doesn’t work, it’s better to transfer investments into that spouse’s name or hold them as joint investments, so you’re making use of both personal allowances.”
Norwich and Peterborough Building Society (N&P), which has launched a new guaranteed fixed rate savings account paying eight per cent gross AER, could be just the place for a spouse to put your combined earnings.
The new Gold savings account is open to anyone who has or opens a N&P Gold current account with into which they have their salary paid.
Mike Hounsell, director of sales & marketing at N&P, said: “This is a golden carrot to get customers to break the habit of a lifetime and switch current accounts for the better.
“Gold Savings Account will appeal to everyone who wants a high return on their savings and, at eight per cent fixed for a year, itís one of the highest rates currently available. As itís a regular savings account itís ideal for saving for special occasions or holidays.”
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