Tax Exemptions
Published / Last Updated on 04/12/2013
by Ashley Clark, Director - March 2010
Utilising tax exemptions and allowances
· Where possible, a couple should try to ensure that they both have pension plans to provide an income stream in retirement that will also use their personal allowances.
· Clients should make maximum use of all personal allowances available to them and their family. A husband and wife each have their own personal allowance. This is particularly relevant where one spouse pays tax at a lower rate than the other. A non-working spouse with no investment income will be able to receive income of £6,475 for tax year 2010/11 before he or she pays any tax.
· Older married couples benefit from an increased age-related personal allowance. It may be advisable to transfer income-producing assets between couples where one would otherwise exceed the age allowance limit of £22,900 (2009/10 and 2010/11).