Money Lesson Couple

Move it to the lower-rate spouse

You are about to sell an investment you have held for years, and the tax on it is not fixed. Between a married couple the same sale can be taxed three different ways, and the difference is decided before the sale, not after.

Employment Investments ISA Milestones Expenses

Put it in the lower earner's name

2 Goals

The whole holding is the lower earner's when it is sold, so the gain is taxed at their rate.

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Employment Investments ISA Milestones Expenses

Split it in half

2 Goals

Half each, so the couple use two tax-free allowances.

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Employment Investments ISA Milestones Expenses

Leave it where it is

2 Goals

Sell it out of the higher earner's name, the way it has always been held.

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Put it in the lower earner's name Leave it where it is

Selling it out of the lower earner's name leaves this couple ~£6.8k better off, with every taxed pound of the gain at the lower rate.

Split it in half Leave it where it is

Moving half of it first leaves this couple ~£6k better off, because a married couple has two tax-free allowances.