Quickie about his and hers IFA?

[thewave]

Client has say £500,000 on cash deposit.
He earns £100,000pa, so is well into higher rates, and therefore pays the difference on his interest.

His wife doesn't work, has approx £100,000 in her name, for what reason would he NOT want all that money in her name and only pay at basic rate.

Cheers.

[JamieBeeston]

She might spend it?
She might run off with it?

It's a common tact used by those with non-earning spouses.

[thewave]

JamieBeeston said:

She might spend it?
She might run off with it?

It's a common tact used by those with non-earning spouses.

So that's the only reason. Trust.

It amazes me that someone who has two children, has been married 30 years, both seem very happy, and yet is prepared to pay thousands of pounds in unecessary tax due to trust.

Never mind. Not my issue.

Cheers

[scotal]

Or Access.... maybe he wants to ba able to say "fcuk it I'm buying a yacht, Porsche, whatever" without asking his wifes permission.

[thewave]

scotal said:

Or Access.... maybe he wants to ba able to say "fcuk it I'm buying a yacht, Porsche, whatever" without asking his wifes permission.

I doubt it

He's in his early 50's runs 8 miles every morning, eats a £3 sunday roast at a cafe (he takes the wife), and drives a Suzuki Grand Vitara.

Now considering the above, does he seem like the sort of person to purchase any of the aforementioned luxury items?

[JamieBeeston]

thewave said:

Now considering the above, does he seem like the sort of person to purchase any of the aforementioned luxury items?

So do him the best favour you can, and show him the error of his ways

[scotal]

thewave said:

scotal said:

Or Access.... maybe he wants to ba able to say "fcuk it I'm buying a yacht, Porsche, whatever" without asking his wifes permission.

I doubt it

He's in his early 50's runs 8 miles every morning, eats a £3 sunday roast at a cafe (he takes the wife), and drives a Suzuki Grand Vitara.

Now considering the above, does he seem like the sort of person to purchase any of the aforementioned luxury items?

then he's a wit, unless he's found a way to take £500k with him he should either be making himself tax proof (as much as poss) or enjoying the money to its fullest extent.

[UpTheIron]

thewave said:

Client has say £500,000 on cash deposit.
He earns £100,000pa, so is well into higher rates, and therefore pays the difference on his interest.

His wife doesn't work, has approx £100,000 in her name, for what reason would he NOT want all that money in her name and only pay at basic rate.

Cheers.

As an aside, if it is all in her name - £600k then a retun of over 6.5% will put her into the higher rate tax bracket as well, assuming she has no other income (otherwise even lower return will do the same).