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bigduckontax, Accountant
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I made some apps for iPhones, and they are doing well, so I

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I made some apps for iPhones, and they are doing well, so I pay tax on the income they give me. I already pay a higher rate of tax than my spouse, so I'm paying the same higher rate on the app income. I don't list the apps individually on my tax returns, I just add an entry saying that I make apps and enter in how much they made as a whole.
Apple allows me to transfer ownership of an app to someone else, and I'm wondering whether it's allowable for me to transfer ownership of an app to my spouse – thus transferring the income to her – so that we pay tax at her much lower rate. The apps generate continuing income every day without me doing any extra work.
From the Apple perspective it's easy to do; my question is whether it's allowable from a tax perspective. We are living together, and I would be giving the app to her rather than selling it.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Inter spousal transfers are outside the scope of UK taxation. Thus you can make a gift of your invention to her, assigning all rights in the process. It's almost akin to a businessman having the domestic residence in his wife's name. Remember Moshe Dayan's quip about what he would do if he lost the Six Day War; his response, to start another war in his wife's name! The income from that particular app is then part of your spouse's income.
I do hope I have helped you with your query.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3369
Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.
One small point, once you have assigned an individual app you cannot get it back again unless your spouse gives it back to you, it now being her property.

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