Pension paid into joint account

jonmac43

If my pension after tax deductions is paid into our joint account is half of it treated as taxable income for my wife?

xylophone

Your income is yours and is taxed as yours, whether in a sole or joint account - if the account pays interest see http://www.hmrc.gov.uk/manuals/saimmanual/saim2420.htm

jonmac43

Thanks xylophone, so it looks as if half my pension would not be regarded as her income but any interest earned by it would be?

xylophone

The normal assumption with a joint account is that it is a like "joint tenancy" rather than tenants in common - in effect each owns the whole in trust for the other and when one party dies, the whole devolves upon the joint owner rather than by will.

Any interest on a joint account held by spouses would normally be taxed on a half each basis but see the information in the link.

If your wife is a non- taxpayer (or indeed if you are) an R85 can be registered for that half of the interest.