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Make the most of your clients’ tax relief
Maximising tax relief has become increasingly important as the number of UK redundancies rise, a tax expert has said.
Because an increasing number of households see their total salaries decrease when one partner is made redundant, Judith Gardener, personal tax consultant at Taxback.com, said: “Couples need to react quickly to changing financial circumstances to keep their tax bills to a minimum.
“It is essential that couples shift assets to the lower, non-tax paying partner or spouse to reduce their tax bills.”
She said the non-taxpayer is eligible for ‘payment of gross interest’, which can be set against their personal tax allowance of £7475 as long as they do not receive interest from other sources.
Ms Gardener added married couples and civil partners can transfer assets to exploit annual capital gains tax exemptions, currently set at £10,600.
