Tax dodge of the week: paired up? Then pay less
According to Independent Financial Advice Promotion, couples unnecessarily hand over £224m of tax to the Inland Revenue each year.
According to Independent Financial Advice Promotion, couples unnecessarily hand over £224m of tax to the Inland Revenue each year.
Take income. Many types of income can be shared between a couple from pensions and savings accounts to property and shares to double up the £5,435 personal allowance (the amount of income someone under 65 can earn tax-free).
And it's not just non-earning partners who should make use of their allowances, says Anne Gregory-Jones, head of tax at accountants Hays Macintyre, in The Daily Telegraph.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It also makes sense to shift income-producing assets into the name of the lower earner if one partner is a basic-rate taxpayer and the other is on the higher rate.
Also, don't forget about capital gains tax (CGT), says Mark Atherton in The Times. The annual CGT allowance rises £400 to £9,600 for the 2008/2009 tax year, so a couple, who get one each, could shield gains of up to £19,200 by a "judicious division of their assets".
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Can I shield my ISAs from inheritance tax?
Many investors and savers will be wondering if there’s anything they can do to protect their ISAs from inheritance tax, especially as pensions will become liable for the levy from April 2027. We reveal the options available to ISA customers
By Ruth Emery
-
What is the average salary by age – and how do you compare?
Are you making more than your peers? We look at the average salary by age to see how much the typical Brit earns at different stages of their life
By Daniel Hilton