PSA - joint accounts

Leomaisie

My husband and I have a mix of joint savings accounts and personal accounts ( e.g cash ISAs, Over 65 bonds). How will the interest for the joint accounts be treated under the new Personal Savings Allowance of £1000?

xylophone

How will the interest for the joint accounts be treated under the new Personal Savings Allowance of £1000?

The interest will be paid gross for both parties to the account.

eskbanker

HMRC work on the basis that interest in joint accounts is allocated 50/50 to each party.

Cash ISAs remain outside the tax regime so aren't taken into consideration at all under the new allowance....

dark.knight_3

xylophone wrote: »

The interest will be paid gross for both parties to the account.

But when the bank inform HMRC of the interest paid, do they just split it down the middle for joint accounts? My parents had this question yesterday - I have advised to keep a record of all interest paid as they have messed up tax codes on their pensions in the past and it wouldn't surprise me if they get this wrong for somebody as well.

Edit - ignore me - slow typing and talking and somebody beat me to it