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Post by spiker on Jun 14, 2017 14:33:59 GMT
Hi,
I am higher rate tax payer, Wife is currently not employed.
We have a joint bank account, Can she create a P2P account in her name and invest from the joint account and effectively pay no tax as any profits from P2P would be below the £11,500 income tax allowance?
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Post by bracknellboy on Jun 14, 2017 14:43:26 GMT
I was going to say:
Yes. You are free to move assets between spouses with no constraints.
The issue here though might be your mentioning of joint account. I'm still inclined to say that if the P2P account is in single name probably ok, but it might be cleaner if funds were coming to/from a sole account.
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SteveT
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Post by SteveT on Jun 14, 2017 14:51:53 GMT
In my experience, most platforms have no issue with husband and wife accounts both being fed from the same joint account.
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Post by spiker on Jun 14, 2017 14:57:31 GMT
Less concerned about the platform, more concerned that I am on the right side of HMRC
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SteveT
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Post by SteveT on Jun 14, 2017 15:02:58 GMT
Less concerned about the platform, more concerned that I am on the right side of HMRC No issue there. Spouses can transfer assets between themselves without tax implications.
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elliotn
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Post by elliotn on Jun 14, 2017 15:31:10 GMT
Less concerned about the platform, more concerned that I am on the right side of HMRC No issue there. Spouses can transfer assets between themselves without tax implications. Bizarre hmrc then tax them individually even though they're pooling their assets. (Also leads to all sorts of shenanigans on p2p re prefunds, bonuses & SM).
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Post by spiker on Jun 14, 2017 16:04:18 GMT
Its not so much transferring assets.
Its getting my wife to buy loans in her name purely to avoid paying tax on the interest made on those loans (which otherwise I would have to pay tax on if they were bought under my name)
I still believe this is valid between husband and wife, just wanted to verify.
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SteveT
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Post by SteveT on Jun 14, 2017 16:17:39 GMT
If you deposit your salary into a joint account and then your wife moves it into an account held in her name only then, by definition, you have transferred money from your ownership to hers.
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hazellend
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Post by hazellend on Jun 14, 2017 17:00:24 GMT
Hi, I am higher rate tax payer, Wife is currently not employed. We have a joint bank account, Can she create a P2P account in her name and invest from the joint account and effectively pay no tax as any profits from P2P would be below the £11,500 income tax allowance? This is a completely legitimate method of tax planning.
Actually the amount you can make from P2P tax free in this situation is 17.5K 11.5k income tax 5k starting rate for savings 1k personal savings allowance
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rogerbu
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Post by rogerbu on Jun 14, 2017 17:09:15 GMT
Hi, I am higher rate tax payer, Wife is currently not employed. We have a joint bank account, Can she create a P2P account in her name and invest from the joint account and effectively pay no tax as any profits from P2P would be below the £11,500 income tax allowance? I am in the same position. Me HR, Wife Non tax payer. Joint accounts for Home and Investment bucket account We have most of our P2P in her name so no tax below Personal Tax allowance £11500+ Invest Income All £1000 + SNRB £5000 (£17,500 zero rate). Rest at 20%. I keep some P2P in my name to achieve just less that £500 interest (Invest Income limit £500 for HR tax payers) When available I will use IFISA to reduce wife's income below £17500 so she will pay no tax. This has been declared in tax returns (for 3 years) with no questions. Tip - Use wife's 206/17 Online Tax return to plug in possible numbers, gives the real HMRC answers. Just remember not to press Submit -
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Post by bracknellboy on Jun 14, 2017 17:37:46 GMT
Its not so much transferring assets. Its getting my wife to buy loans in her name purely to avoid paying tax on the interest made on those loans (which otherwise I would have to pay tax on if they were bought under my name) I still believe this is valid between husband and wife, just wanted to verify. : but it IS precisely about the ability to "transfer assets". You are asking whether it is OK for her to invest joint funds and benefit from being a non taxpayer even though you are an HR/AR taxpayer. If they started out being 'her' sole assets and she was investing them then you would not have felt the need to ask the question. So the question only makes sense if you are envisaging that money that you "own" or "earn", or which you jointly "own" can be put into a p2p account in her sole name to make use of her tax allowance. Answer: yes, because it is entirely legit to move assets between spouses as you see fit. And you can't make use of her tax allowance unless the interest earned is seen to be hers i.e. held in a p2p account in her sole name. Holding capital which has either always been in her name, or has at sometime been held in either joint or your sole name. Of course, legally, those assets i.e. held in the sole name joint account is her asset i.e. has been transferred to her.
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Post by spiker on Jun 14, 2017 18:49:14 GMT
Thanks to those who answered. Its the answer I wanted to hear  rogerbu, is "your wife" really making more than £17,500 interest per year via P2P?  |
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duck
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Post by duck on Jun 14, 2017 19:16:57 GMT
I'm a bit late on this one but I agree no problem with spouses .......... in fact I got married last year (been together 20 years and neither of us wanted to get married) since income tax and inheritance tax planning made this sensible. My wife received interest just above 17K last year and no tax is due (17.5K allowance). I have directly funded most of her investments.
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Post by spiker on Jun 14, 2017 19:35:05 GMT
how the heck do you make 17k interest?
must have 150k+ invested in P2P?...
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jun 14, 2017 19:38:12 GMT
how the heck do you make 17k interest? must have 150k+ invested in P2P?... I think there are those on here who have Millions invested .......................................
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