Tax splitting..

I'm looking for some advice on the best way to use tax allowances..

I'm employed and just below the 40% tax bracket (after the recent changes). My partner is retired and only has a partial state pension as income.

It seems to me she has a lot of unused tax allowance which could be put to better use - so can I send some of my income her way in any legal fashion? (I know tax loopholes are only really for the rich...) If it helps to know it, I'm recently divorced, she is separated from her ex. Neither of us has any major investments or outside income, but no major debts either...

Thanks for any advice. As long as it isn't 'get married' ;-)

Reply to
PCPaul
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Not employment income. If you were self employed you could employ her to do admin etc, but there's really no way with employment income. You can put any savings in her name so she earns the interest (which these days is likely to be bugger all).

It's a deliberate policy not to allow couples to transfer their personal tax allowances, it saves the government a fortune. They claim that independant taxation is an "important principle", some people are stupid enough to believe them.

Makes no difference. The Tories were talking about transferrable tax allowances between married couples so maybe in a year or two...

Reply to
Andy Pandy

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