can non domiciled wife save tax

[malex97]

My wife and I live outside the UK. I own several properties in the uk and I use my personal allowance to minimise tax. If I bought moreproperties I would pay more tax. Can I purchase a property for my wife and will she be able to utilise a personal allowance to offset rental income?

[Lee Young]

Yes. You would be making a gift to her for IHT and CGT purposes of the pruchase price, or the property once purchased. Both will be exempt. The income generated by the propertties would belong to your wife and would then use her lower marginal rates of tax.

[malex97]

Thanks Lee, I will look into doing this next year.My wife will probably buy a propertywithj her/our money and we will do this for the small tax saving that will come our way, (and which we will spend on shopping!)Then when the kids become eighteen I might try to do it again.