Debbie Reyland warns of pitfalls when reallocating income between spouses or civil partners for tax purposes.
Couples commonly enjoy very different levels of income, sometimes to the extent that each spouse or civil partner is not fully using their own personal allowance and set of lower tax bands. At the extremes, this can result in a marked divergence in marginal tax rates of at least 45%.
A more equitable split of income will result in an evening-up of tax rates and a welcome tax saving for the couple overall. If the household includes minor children, the need for balance is even greater, given the cliff-edge thresholds which apply for the
