Reclaiming income tax

gunnaknow

Hi, I've got a query that I hope someone knows the answer to. My parents are married but are separated, so they aren't taxed as a couple. My dad works but my mum doesn't. His annual tax free allowance is fully utilised on his income but because my mum doesn't work, her annual tax free allowance isn't fully utilised. She claims back the tax from the interest on the savings in her name but this still leaves alot of unutilised tax allowance.

Could she use the rest of her annual tax allowance by claiming back the tax on the savings that are in my dad's name? Providing that he agrees, ofcourse? What about the savings in their joint accounts? Can she claim back the tax on all of the money in their joint accounts, or just 50% of it? Thanks alot for your help!

Mikeyorks

gunnaknow wrote: »

Could she use the rest of her annual tax allowance by claiming back the tax on the savings that are in my dad's name? Providing that he agrees, ofcourse? Not unless he firstly moves the money under her name.

What about the savings in their joint accounts? Can she claim back the tax on all of the money in their joint accounts, or just 50% of it? Joint accounts are assumed 50;50 when it comes to interest. She can only claim 'her' 50%. Some joint accounts won't permit an R85 to only be filed for one party. It's either both or none, owing to software deficiencies at some institutions.

No one is taxed 'as a couple' these days. We all have our individual allowances ....... so 'unused' allowances via a non-working / part time working spouse isn't unusual.

gunnaknow

Thanks Mike, that was very helpful.