Festive Tax Tips

As the countdown to Christmas begins, we thought we would bring you our own special Festive Tax Tips.

Festive Tax Tip: Transfer of shares and assets to spouses or civil partners

Are you currently paying tax at the higher rate of 40% or even the top rate of 50%? If so, have you considered transferring some of your shares or other income-earning assets to your spouse or civil partner if they are not higher rate taxpayers? This would normally result in an income tax saving and can usually be achieved without any capital gains tax implications as assets transferred between spouses or civil partners do not normally give rise to a tax liability. The transfers should be made with “no strings attached”. For assets transferred between non-married partners, normal capital gains tax rules apply i.e. capital gains tax may be payable.