Tax on savings and investments Tax saving tips

1Transfer savings and investments to your partner

There are many ways you can reduce your tax exposure

Are you part of a couple, and is one partner is in a lower tax band than the other? 

If so, it might make sense to transfer savings and investments from the partner in the higher band to the partner in the lower band. 

It makes particular sense if one partner is a non-taxpayer because their income is below their personal allowance.

See our guide to tax and your partner for more ways having a partner can affect your tax situation.

2Claim back overpaid tax

If you are a non-taxpayer, make sure you claim back any tax you have overpaid on your investments or savings. You need form R40 from HM Revenue & Customs (HMRC).

3Stop your savings getting taxed

Better still, fill out form R85, so your savings don’t get taxed at all.

4Declare offshore savings income

Make sure you declare any income you receive from offshore savings, or other savings where tax is not deducted before you get it. 

You have until 6 October following the tax year in which you received the income to do so.

5Use your tax-free cash Isa allowance

Make tax-free cash Isas the first home for spare cash. They pay better rates than most ordinary savings accounts.

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