From: Alex Heney 
Newsgroups: uk.finance uk.legal
Subject: Re: Married Couple - Savings in Non Tax Payers a/c ?
Date: Fri, 16 Jul 2004 00:01:53 +0000 (UTC)

On Thu, 15 Jul 2004 21:05:23 GMT, Ronald Raygun
 wrote:

>Nebulous wrote:
>
>> 
>> "Daniel"  wrote in message
>> news:2lo8fgFe45onU1@uni-berlin.de...
>>> Is the following legal ?
>>>
>>> If a married couple puts all their savings into the account of the person
>>> who isn't a tax payer, rather than having it in the tax payers account ?
>>>
>>> Eg.  If one partner worked and the other didn't, would this be allowed ?
>>>
>>> Any advice appreciated,
>>>
>>> Thanks
>>> Daniel
>>>
>>>
>> Yes it certainly is allowed, but then it isn't their money- it belongs to
>> whoevers name it is in. This person can then do what they want with it
>> without permission from the other one, including ending the relationship
>> and keeping it all.
>
>Not correct.  You can gift beneficial interest without gifting
>controlling interest.  The same is true of assets other than money,
>such as BTL houses, where you can retain paper ownership but gift
>the rental income to the spouse.

But if you do that, then you will still be liable for the tax on it
under the settlements legislation (Sections 660A-G ICTA 1988 as
amended by Finance Act 1995)


Outright gifts between spouses are exempt from this, but not gifts
which are basically gifts of income.

The IR are even trying it on at the ,moment with Husband and Wife
businesses, where only one brings money in, but both have shares in
the business. There is a court case with judgment expected in a few
weeks that hopefully will clarify whether their interpretation of this
law is valid.