Stopping the tax man claiming my money

RabbitMad

The missus has recently had a little bunny so there's not much sleep happening in our warren at the moment therefore I am asking a really stupid question that I think I know the answer too, and I'm sure if I had a decent nights kip I wouldn't need to ask.

The missus is going to be a basic rate tax payer this year, I'm gonna be a higher rate tax payer. We have some cash in a joint account earning interest. Can we consider the interest earnt as being 99% belonging to my wife and the other 1% belonging to me or do we need to go to the hassel of opening a new account just so we can store the cash in her name?

Thanks in advance

oldfella

open a savings account in her name

RabbitMad

Thanks, I was hoping to avooid the hassle but now I've had a few coffees and a read of the HMRC website I agree this is the only option.

Jonbvn

HMRC considers joint accounts as a 50/50 share. Therefore, if you continue to save in this account, you will pay 30% tax on the interest.

As recommended above, open an account in your wife's sole name, and you will only pay tax at 20%, saving yourself 10% of the interest.

My wife is a non-taxpayer, which makes it even better for us to save in her name only.