Split of tax on joint savings accounts

beefturnmail

I am just trying to plan ahead for when the tax free savings allowance comes in in April 2016, as I pay 40% tax (so have the limit of £500 which I will be over), whereas my wife pays 20% tax (so gets the full £1000).

We have some joint savings accounts and I thought tax on these was always split 50:50, however I stumbled across this link on the web which seems to suggest you can declare how the tax is split http://www.telegraph.co.uk/finance/personalfinance/savings/10775097/Loophole-for-couples-to-cut-tax-on-savings.html by making a 'Form 17 Decleration'

It dates from 2014. Does anyone know if it is still valid? - could I simply just use this to say my wife owns 99% of the joint savings accounts as a means (to reduce the amount of interest I earn to under £500)?

jennifernil

Why not just put more of the savings in her sole name?

That way there can be no arguement from HMRC.

Darksparkle

Isn't form 17 purely for property?

https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17

booksurr

beefturnmail wrote: »

by making a 'Form 17 Decleration'

It dates from 2014. Does anyone know if it is still valid? - could I simply just use this to say my wife owns 99% of the joint savings accounts as a means (to reduce the amount of interest I earn to under £500)?

Form 17 applies to rental income from property only

you cannot divide a joint bank account other than 50/50

Darksparkle

Guidance on joint interest accounts - http://www.hmrc.gov.uk/Manuals/saimmanual/SAIM2420.htm

beefturnmail

Thanks all. Could put more savings in her sole name, but the accounts in question are high interest earning current accounts (with TSB and Lloyds), where we couldn't match the rate elsewhere.

I thought Form 17 related to Property also, but the Telegraph article and the guidance SAIM240 reads (to my untrained eye) like 'property' here is being used in the sense of a asset including cash and it does seem like spouses or civil partners can elect for joint accounts to not be taxed at 50:50, but I need to read through the guidance TSEM9805 linked to from the link Darksparkle gave

I would be interested to hear from any experts or anyone who has done this

[Deleted User]

http://www.rossmartin.co.uk/sme-tax-news/693-joint-property-new-guidance

Last paragraph relevant?