Personal Tax Tip 3 – Splitting income with your spouse

Have you used the legitimate ways to reduce your tax bills by transferring income from a spouse paying tax at higher rates to a spouse paying tax at lower rates?

Tip: At the very least you should aim to make sure that neither spouse wastes their £8,105 tax free allowance – but early professional advice is essential. In particular, care needs to be taken not to divert income deriving from a spouse’s company if that spouse substantially performs the work.

If your spouse pays tax at a lower rate than you, have you considered passing some of your investments to them in order to reduce your combined tax bills?

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