We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
123 Account
mally73
Posts: 1 Newbie
I have a joint 123 account with my wife, we are building up quite a bit of interest, I'm a taxpayer she is a non taxpayer, I pay the full 20% tax on interest. Should the taxation be reduced as she's not eligible to pay income tax.
0
Comments
-
If she had sole account it would be tax free.
I think it's normally assumed to be 50:50 so she may be able to claim back her tax.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Suggest your wife opens up another one solely in her name, and switch the majority of the funds into there, plus 2 of the DDs. And ask the bank not to deduct tax from hers.0
-
She needs to complete an R85 form to get the interest tax free the same as she would if it was a sole account.
The form has a box to tick to indicate if it is a joint account or not (if it is they'll only pay half the interest gross unless the other party also completes such a form)
http://www.hmrc.gov.uk/forms/r85.pdf0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards