Ipswich Financial Adviser

If you are fortunate enough to have savings or investments and these are not in a tax efficient vehicle like an ISA, it is likely you will have to pay tax on the interest you receive at your prevailing income tax level. This could be nil, 20% or 40% of the interest you receive.

But what if your spouse has a lower income tax level than you? The sensible thing to do would be to put some or all the money into your spouses name so that any interest received would be taxed at your spouse’s lower income tax rate. Simple but very effective!

Always check with your tax adviser and financial adviser before making any changes to your savings or investments to ensure you don’t trigger any other taxes, but on most occasions you can prevent paying unnecessary tax to the HRMC.

If you would like any help or advice on this matter please contact Thompson Financial Consulting Ltd

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.