non tax payer and saving

heathtown

hi all
could someone answer this please,my wife does not work she is 61 soon,if she opened an ordinary savings account would she have to pay tax on her savings,or would the interest earned be included in her tax allowance
thank you

psychic_teabag

She can register with the provider to receive the interest tax-free. Just have to fill in a form (R85 perhaps ? Something like that.)

Otherwise I think she can apply to get the tax repayed.

joerugby

Does she have any income e.g. a pension? It's her total income which will determine her tax position

heathtown

thanks for that info,appreciated

Jake'sGran

You can run off a form R85 from the Revenue's web site - if you have a printer that is.

I am older than your wife and send an R85 when opening any new savings account.
Occasionally the bank/BS have said they didn't receive it and I have had to reclaim the tax from the Inland Rev. which is irritating.

You need to add up your wife's pension/s and any other income to be sure she does not earn more than her tax free pay.

heathtown

hi all
i have just recieved a pension lump sum,put it in our joint account.can i give it to my wife for her to save in a fixed term bond,she has no income at all,this way she would be able to pay no tax on the interest earned. i this allowed or would the tax man cometh after me? thanks

jem16

heathtown wrote: »

hi all
i have just recieved a pension lump sum,put it in our joint account.can i give it to my wife for her to save in a fixed term bond,she has no income at all,this way she would be able to pay no tax on the interest earned. i this allowed or would the tax man cometh after me? thanks

No it's perfectly allowed and indeed sensible. Remember though that savings income does count towards taxable income.

Sparky47

There is nothing wrong with opening an account in your wifes name.
Providing her total income including the interest does not exceed her personal allowance, then she will not pay any tax.
Just remember that the money is then hers.

heathtown

thank you for that good news