Claiming gross interest on savings

McChutney

Can anyone please tell me, is it ok (I.e. Legal) for me as a non-tax payer to have a savings account solely in my name and be registered for gross interest when those savings are about half mine from inheritance and half savings from DH's salary?

Been trying to google and having no luck. cheers.

Masomnia

If it's all in your name then yes, perfectly legal. There's no tax on gifts in the UK, so legally your OH will have given you the money as a gift, and you can then give it back if you wish. The proviso is thus that it is your money.

Sparky47

Yes perfectly legal. It makes sense for couples to put savings in the name of the one who pays the lowest rate of tax or is a non taxpayer.

Jonbvn

Absolutely,

OH is a very rich non-tax payer, whereas I am a high rate pauper!

triplea35

Do remember though that as a 'non tax' payer you have an allowance of £6475. All interest accrued and any other income is included in this allowance.

My wife had a small income and that together with some gross interest from some of our savings put her a little above the tax free allowance. The taxman was very quick in writing to her and pleasently rerminding her that she was at or very close to her tax free allowance for the year and should not receive any further gross interest.

blinko

how can a non tax payer have qa tax allowance ?

triplea35

If your total income exceeds £6475(for under 65's) you become liable to income tax, you should receive all interest 'net' and claim back the gross element upto your personal allowance.
However if your total income is likely to be below the allowance of £6475 you will not be liable to tax and therefore a non tax payer.

Thats my understanding of the situation and it appears to work for us, the taxman has not required either of us to submit any returns.

McChutney

Thanks very much. There's no way my income will exceed that amount. I've had our savings in my name for a few years now, but I tried to apply for the Natwest E-saver account last night but it said I couldn't as I was a non-tax payer. It just made me think I better re-check.

juicyjude

I completed an R85 form as I am a non tax payer. I kept a note of my savings interest income (my only income plus S & S ISAs) on a monthly basis and in Feb I realised I was nearing the figure of £6475 and de registered my savings accounts. As I am unlikely to go over that figure in this tax year I again completed R85s for my account this tax year.