Spending capital

amarshallamarshall Member, Moderator

Retired clients in their early 70s.

He has guaranteed pension income of £110k, she has guaranteed pension income of £10k.

Their accountant has suggested that they should put all capital (circa £2.0m) in her name and spend only from her accounts whilst he gifts his (entire?) income to children/grandchildren/trust.

A quick Cashflow analysis shows it is affordable to age 93 but it could easily be tinkered with to make the capital last longer.

Can anyone see HMRC buying this or will they see it for what it is? Everything that I have read on gifting as part of normal expenditure out of income only seems to look at it from the perspective of an individual.




Sign In or Register to comment.