Want to buy breakfast with how to invest to avoid income tax? I have previously taken the allowable tax-free sum.
11,500 a year, what options are there for us to legally avoid paying any tax? Are we able to share each others taxable allowances? If possible, how do we go about it? We are both in our mid to late 60s.
Pension income: How do couples minimise their tax bill legally in retirement? A 78 PER CENT fee to move a pension? 11,500 which may be relevant in your situation or to others with money to invest. I should stress though that I am not advocating a particular course of action for you, but hopefully providing helpful factual information that will inform your own decision making. The first allowance that you could claim is the ‘Marriage Allowance’, which was introduced with effect from 2015-16. This is not to be confused with the old ‘Married Couple’s Allowance’ which only applies now to the oldest married couples, those with one partner born before 6th April 1935.
10 per cent of her personal allowance to you as her husband, provided she is not using it herself. You can read more about the Marriage Allowance and how to apply here. 17 and potentially receive a cheque for a tax refund for each of those years from HMRC. The second allowance to be aware of is the ‘Personal Savings Allowance’, which was introduced in April 2016. 1,000 per year in income from savings without paying tax. This is separate to your main personal allowance.
The definition of savings income includes interest on investments. This would not apply if you were to buy an annuity with the money left in your SIPP, but if you still have any of your tax-free cash left and have it invested in interest-bearing accounts, you should not have to pay tax on that interest. Can I spend one pension pot when I turn 60 and then save another one for later? Can I give my wife half my pension?