185 million wasted by Britons not taking advantage of lower tax rates
Your 'other half' could save you money, says IFA Promotion
185 million could be rescued from the taxman by UK taxpayers transferring savings accounts to non-taxpaying spouses, if appropriate, so that the tax liability on the savings is lower, or even zero, according to research* from IFA Promotion, the organisation promoting the benefits of independent financial advice.
"This is a simple tax saving if your husband or wife is a non-taxpayer or pays a lower rate than you do," said David Elms of IFA Promotion. "Simply transferring savings or investments to your non-taxpaying partner could save you a considerable amount."
According to the research, the average deposit held by individuals in the UK is 10,709. If a higher rate taxpaying husband transferred two thirds of this sum - 7,140 - into his wife's name (assuming she has no income currently and therefore no tax liability), and the sum was invested in an instant access account paying 6.5% gross, the couple could make a gross saving of 107 a year.
Elms concluded: "Your local independent financial adviser will be able to advise you about transferring assets as well as many other ways to cut your tax bill."
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To request a free guide - Thinking about your tax efficiency? - or for details of local IFAs, call the IFA Promotion hotline on 0800 085 3250 or visit the website at www.unbiased.co.uk.
For further information please contact:
| David Elms Chief Executive IFA Promotion 020 7833 3131/ 07803 603 659 | or | Richard Winder/ Pippa Russell Lansons Communications 020 7490 8828 |
* Wasted Tax 2000 conducted by independent research agency, RAKM, for IFA Promotion. For detailed enquiries on the Wasted Tax investigation content, please contact: Paul Hersey Research Analysis and Knowledge Management (RAKM) 01737 773 497
Notes to Editors
1. Independent Financial Adviser Promotion
Independent Financial Adviser Promotion Ltd. was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents nearly 10,000 registered individual independent financial advisers across the UK and is sponsored by 31 leading financial institutions.
2. Independent Financial Adviser Promotion's sponsors
| Barclays Global Investors Funds BUPA Canada Life Clerical Medical Investment Group Dresdner RCM Funds (UK) Ltd. Eagle Star Family Assurance Friendly Society Ltd Friends Provident INVESCO Fund Managers Ltd Investec Asset Management Legal & General Merrill Lynch Investment Managers National Mutual National Savings Norwich Union Life NPI | Prudential Intermediary Division Scottish Amicable Life Plc Scottish Equitable Plc Scottish Life Assurance Company Scottish Mutual Assurance Plc Scottish Provident Institution Scottish Widows plc Standard Life Assurance Company Sun Life Swiss Life (UK) plc The Skandia Group of Companies Tunbridge Wells Equitable Friendly Society UNUM Ltd Winterthur Life UK Ltd Zurich Life Assurance Company |