The Lemon Fool

i didnt want to hijack either of the other probate threads,,,so,,,

like many others we ae not on same tax rates for annual payments
we therefore (sensibly imo) have lower tax rate payer holding the majority of interest earning investments

each year an amount needed for BOTH ISAs is transferred to each name from the holderr of the funds

ie husband to wife/viceversa


do we have to keep note of each of these transactions for the 7 year rule?...husband wife!!

i mean with most banks now imposing transction limits to only nominated accounts it can requitre 3 or 4 movements to get the required aomount in the right place

No need for any records except for your personal use, transfers between spouses are tax exempt.

UNLESS you transfer equities between spouses, in which case the reciever is deemed to have acquired them at the original purchase price, so no CGT to the donor but potential CGT (or use of their allowance) from the recipient

Re movement limits, Santander recentlly imposed a £5k online limit on me which was easily reset to 20k, debit card is AFAIK still 99k. I moved to Lloyds last year as they had amongst the highest limits of the main banks, up to £250k in branch. MrsF is with HSBC, who have always been a PITA in this respect.

Paul

DrFfybes wrote:No need for any records except for your personal use, transfers between spouses are tax exempt.

Yes, funds are constantly passing back and forth between my wife and I, and we keep no records since they cannot be tax events under any current rule.

The only time a share position changed hands, a full market price was paid for it, to keep things simple.

mutantpoodle wrote:i didnt want to hijack either of the other probate threads,,,so,,,

like many others we ae not on same tax rates for annual payments
we therefore (sensibly imo) have lower tax rate payer holding the majority of interest earning investments

each year an amount needed for BOTH ISAs is transferred to each name from the holderr of the funds

ie husband to wife/viceversa


do we have to keep note of each of these transactions for the 7 year rule?...husband wife!!

i mean with most banks now imposing transction limits to only nominated accounts it can requitre 3 or 4 movements to get the required aomount in the right place

No. There is no inheritance tax to pay for any transfers between husband and wife. This applies to transfers before death as well, so the 7 year rule does not matter.

On second thoughts...

The inheritance tax rules may change in the future, so it may be no bad thing to keep a note of significant transfers.

hiriskpaul wrote:On second thoughts...

The inheritance tax rules may change in the future, so it may be no bad thing to keep a note of significant transfers.

Alternatively, that possibility may be a good reason NOT to keep any records?

scrumpyjack wrote:

hiriskpaul wrote:On second thoughts...

The inheritance tax rules may change in the future, so it may be no bad thing to keep a note of significant transfers.

Alternatively, that possibility may be a good reason NOT to keep any records?

No tax change should be introduced that requires retrospective record-keeping.

So if for example indexation of capital gains was re-introduced then it should apply only as of the date of the change. Because right now there is no need to keep a record of the acquisition date. So I do not.

Lootman wrote:

scrumpyjack wrote:Alternatively, that possibility may be a good reason NOT to keep any records?

No tax change should be introduced that requires retrospective record-keeping.

So if for example indexation of capital gains was re-introduced then it should apply only as of the date of the change. Because right now there is no need to keep a record of the acquisition date. So I do not.

Sounds like wishful thinking!

The resident nil-rate band was a retrospective tax change. The reductions in the pension LTA and subsequent freeze amount to retrospective changes. I am sure there are other examples.

Denis Healey's introduction of Capital Transfer Tax was a retrospective change. It was introduced in his Spring Budget in 1975 and applied retrospectively to the estates of people who had died after 26th March 1974.

Roy Jenkins in the 60s had retrospectively imposed a one-off Special Charge on investment income in the preceding tax year, resulting in some people facing a marginal income tax rate of greater than 100%.

I'd be surprised if only Labour politicians have been guilty of this sort of abuse of the taxpaying public.