Did you know that each member of the family, even a minor is treated as a separate taxpayer and has their own tax free personal allowances and exemptions?
Spreading assets and income around the family can reduce the overall tax bill. Some key points to consider are:
- If your spouse or partner is a basic rate taxpayer and you are a higher rate tax payer, it may make sense to ensure that income producing assets are in the name of the person with the lower tax exposure. For example a bank account earning high interest or even an investment portfolio.
- If parents give capital that generates income of more than £100 a year, the parents are taxed on that income until the child either becomes 18 or marries.
- The main way of mitigating tax on children’s capital is to ensure it is invested in funds that generate capital growth rather than income.
- If you are thinking about investing in property consider owning the property with your spouse and geeting a deed drawn up to enable benefitial share ownership utilising the spouse's basic rate band.
A good referral this week would be a husband who has his own business and whose wife either doesn’t work or works part-time.
For further details please do not hesitate to get in touch. mitch@ljd.uk.com
Mitch Young from Lerman Jacobs Davis, I am helping you and your business to count!
No comments:
Post a Comment