joint or individual saving account

allan_2

have come into a bit of money which I will be holding onto for just over a year before i can pay it into my mortgage. I have opened up the ISA's for this year and will top them up again for the next financial year.

I was going to open up a joint savings account from icesave for the lump sum (and trickle feed other savings accounts at higher rate). My question is this though, I am a higher rate tax payer but for the next year my wife will not be working, is it worth just opening the account in her name to avoid paying the higher tax on the intrest?

If so, how do you go about claiming the tax back on the intrest too?

Thanks

InMyDreams

allan wrote: »

I was going to open up a joint savings account from icesave for the lump sum (and trickle feed other savings accounts at higher rate). My question is this though, I am a higher rate tax payer but for the next year my wife will not be working, is it worth just opening the account in her name to avoid paying the higher tax on the intrest?

If so, how do you go about claiming the tax back on the intrest too?

Thanks

I would say yes, why not? I'm also a non-tax paying spouse and all savings are in my name, except for ISA's. It's just as easy to open in her name as in joint. Actually there is one important 'why not' which I would hope doesn't apply, but should be mentioned. If in your wife's name then the money is totally hers and (on paper) nothing to do with you until she pays it back into an account with your name on. Do you trust her to do with it what you want in just over a year's time?

You don't have to claim the tax back at all if you (I mean she ;-) ) fills in an R85 form when you (I mean she) opens the account. Or you can ask the bank for the form.