Tax and your partner Your investments

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Transferring assets to your partner may save tax

If one of you pays tax at a higher rate, a simple way to save tax is to transfer some investments to the person paying the lower rate.

The transfer has to be a genuine gift – you can't demand the money back if you change your mind.

Joint income

If you have investments in joint names, you'll each automatically pay tax on half the income even if you own them in unequal shares.

If you prefer to be taxed on the actual proportion you own, complete Form 17 (available from HM Revenue & Customs or your tax office).

You can't have the income taxed on an unequal basis just because you think it would be to your advantage – the investment must truly be held in unequal shares. Jointly-owned shares in your own company are always taxed in line with the proportions in which you own them.

 

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