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    • Rikey
    • By Rikey 3rd Feb 18, 9:37 AM
    • 15Posts
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    Rikey
    Tax on interest
    • #1
    • 3rd Feb 18, 9:37 AM
    Tax on interest 3rd Feb 18 at 9:37 AM
    My wife and I have several savings accounts in joint names. However, the various linked bank accounts have either only her name or only my name in each instance. We have the savings funds spread between us to maximise tax free allowances. Does it matter from a tax perspective if a joint savings account has only one name on the corresponding linked account? What I'm asking is, if my wife and I are both named on the joint savings account yet she is only named on the linked bank account, for tax purposes would she be deemed to have earned all the interest on the savings account? I don't imagine this so but would appreciate any advice. Thank you.
Page 1
    • Vortigern
    • By Vortigern 3rd Feb 18, 9:52 AM
    • 2,357 Posts
    • 1,568 Thanks
    Vortigern
    • #2
    • 3rd Feb 18, 9:52 AM
    • #2
    • 3rd Feb 18, 9:52 AM
    What matters is the name(s) on the account that generates the interest. So on a joint savings account each of you would be liable for tax on the interest. The name on the associated feeder account doesn't matter.
    • ValiantSon
    • By ValiantSon 3rd Feb 18, 12:51 PM
    • 856 Posts
    • 695 Thanks
    ValiantSon
    • #3
    • 3rd Feb 18, 12:51 PM
    • #3
    • 3rd Feb 18, 12:51 PM
    If your wife is the only one named on the savings account then the tax liability is entirely hers.
    • Rikey
    • By Rikey 7th Feb 18, 8:55 AM
    • 15 Posts
    • 2 Thanks
    Rikey
    • #4
    • 7th Feb 18, 8:55 AM
    • #4
    • 7th Feb 18, 8:55 AM
    Thank you for that, Vortigern.
    • Rikey
    • By Rikey 7th Feb 18, 9:03 AM
    • 15 Posts
    • 2 Thanks
    Rikey
    • #5
    • 7th Feb 18, 9:03 AM
    • #5
    • 7th Feb 18, 9:03 AM
    Thank you, ValiantSon. No, my question was if joint names are on a savings account but only one of those names is on the associated linked account (which all withdrawals are paid to), would that person be liable to all of any tax liability on the interest earned on the savings account because technically, they are the only person with access to the funds in the savings account (including the interest)? Vortigern's answer above is what I assumed to be the case.
    • Paul_DNAP
    • By Paul_DNAP 8th Feb 18, 9:50 AM
    • 22 Posts
    • 24 Thanks
    Paul_DNAP
    • #6
    • 8th Feb 18, 9:50 AM
    • #6
    • 8th Feb 18, 9:50 AM
    Yes, the interest is earned within that saving account then the tax liability is on the holder(s) of that savings account.


    Where the money comes from to pay into that savings account, or where it goes to after it leaves that savings account has no bearing on the matter.
    • Rikey
    • By Rikey 12th Feb 18, 12:50 PM
    • 15 Posts
    • 2 Thanks
    Rikey
    • #7
    • 12th Feb 18, 12:50 PM
    • #7
    • 12th Feb 18, 12:50 PM
    Thank you, Paul.
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