Tax on joint account

lindiann

Hi I am new at this hope I have posted in the right place. My friend has a problem she has a joint account with Halifax with her daughter who lives in Australia. She has suddenly started being charged tax on the interest which has never happened before (she is retired) and they tell her that the Halifax has gone in with LLyods and they do this as they do not like foreigners on joint accounts? She has tried to sort it out filling in the form for tax relief and has even been to the tax office. Any ideas what she should do she wants to close this account but they informed her her daughter would have to come over from Australia in person to do so

jackomdj

If they won't let her close it then take all but 1p out & she won't have to worry about the tax.

somethingcorporate

Just move the money elsewhere.

Being retired does not exempt people from tax by the way, so do make sure it is not owed before filling the forms in again.

bigfreddiel

lindiann wrote: »

My friend has a problem she has a joint account with Halifax

her daughter lives in Australia.
She has started being charged tax on the interest

she is retired

Halifax do not like foreigners on joint accounts

She has tried to sort it out filling in the form for tax relief and has even been to the tax office.

she wants to close this account

lets see now - joint account or not it makes no difference - if your income is over your tax allowance you pay tax on interest - on a joint acount with one other person its split down the middle

being rettired makes no difference - retired people pay tax just like anyone else

doubt the halifax care where you live

what did the tax office say and what did you fill in and on who's advice

just empty the account and leave it - one day halifax will close it

cheers

fj

xylophone

See http://www.hmrc.gov.uk/manuals/saimmanual/saim2420.htm re tax.
Was the friend actually entitled to receive interest gross? (Being retired does not automatically entitle a person to gross interest.)
See also http://www.hmrc.gov.uk/international/tax-incomegains.htm
Has the daughter written to Halifax explaining the situation?

lindiann

Thats a point if she gets a pension perhaps her interest takes her over the tax allowance Thanks everyone

lindiann

"doubt the halifax care where you live"

Just found this on Halifax website
From September 2011 Halifax no longer accepts registrations for gross interest from non UK residents.

"Was the friend actually entitled to receive interest gross? (Being retired does not automatically entitle a person to gross interest.)"

Her pension and interest do not go above the tax allowance

bigfreddiel

lindiann wrote: »

"doubt the halifax care where you live"

Just found this on Halifax website
From September 2011 Halifax no longer accepts registrations for gross interest from non UK residents.

pretty clear then

jem16

lindiann wrote: »

Just found this on Halifax website
From September 2011 Halifax no longer accepts registrations for gross interest from non UK residents.

That's fair enough for the daughter. However it should still be possible for your friend to register for her half of the interest to be paid gross.