Want to avoid tax? Get divorced!
Senior tax partner at Grant Thornton, Mike Warburton, has this week been handing out ingenious (almost) tips for avoiding tax.
According to GT’s finest, one method for wealthy, elderly spinsters to avoid death duty, is to marry a boy/girlfriend of their children.
This rather unusual method, aired on Radio 4’s Today Programme works as gifts swapped between man and wife are tax free. Once the gifts have been exchanged the couple then divorce and return to their previous situation – with the gift passed on.
Warburton, said: ‘This method is actually technically sound, although it is not something I would recommend and none of my clients have yet carried out this procedure.’
Another drastic tax tip from Warburton was for married couples with large pensions. He suggested that if they divorced, the couple could split the pension in half, in the process lowering their tax status, saving as much as £7000 per year.