I am about to receive my state pension which will be paid into a joint bank account held by my wife and myself. I will be taxed at the full rate; however my wife is a non-taxpayer. Is it possible for me to transfer this income into my wife’s name in order to reduce the amount of tax paid?

Arthur Weller replies:
The Government announced in the Budget that up to £1,050 of the personal allowance of one spouse can be transferred to the other spouse, provided the recipient is not liable to tax above the basic rate. There is already a provision for transferring unused married couple's allowance (i.e. where one spouse was born before 6 April 1935) from one spouse to another.