Removal of Joint Account Holder

sparkyspark

Looking forward at my tax situation on savings for 2013/14 my wife and I have two accounts due to mature in July 2013. As my wife does not have any income she has her full allowance available whereas if I was to incur the 50% tax on these accounts it would push me over my limits.
So my question is can I remove my name from the accounts and therefore effectively transfer the whole tax liability to my wife's allowance? The two banks are Santander and the Derbyshire who have both confirmed my name can be removed but would I be liable for any tax for the 10 months they have been joint accounts. We have already used our ISA allowances for 2013/14. Thank you.

opinions4u

What 50% tax?

redbuzzard

He means 50% of the tax liability on the interest income not 50% tax.

You used to be able to declare the split of the interest income to the Inland Revenue, as it was. Perhaps you can't do it now, I can't find any reference to it. In which case the OP would strictly be liable on half the interest paid when he was a joint account holder. What interest certificates will the lender issue I wonder?

EDIT - you can still declare different beneficial interests but they appear to make more of a song and dance of it than before - the form is linked below. The fact that they now ask for evidence of the beneficial interest rather than a simple declaration suggests a harder attitude - so it will be much easier just to give the money to your wife, which you can do quite legitimately, and she can keep it in a sole account as you mentioned. Apology for the slightly red herring.

http://www.hmrc.gov.uk/forms/form17.pdf

Happy to be corrected - I am no tax expert, clearly.

home_alone

I was in the same position and all I did was contacted the bank and they sent me a form to fill out which took my name off the account and as my wife had already sent the R85 form to them when we stared the account she is now paid gross for the total amount, but question is do you trust her.

sparkyspark

Thanks for the reply's guys and sorry for my late update, been busy.
In answer to home_alone yep I trust the wife :eek:
Called into the Santander and spoke to the manager today, and as per your advice when I remove my name all the interest then defaults to my wife with no liability to myself. Even gave me the form to fill in, so thanks again for taking the time to offer your opinions, it's much appreciated :T