Income tax on joint savings

Mikeyorks

ceeforcat wrote: »

2) I believe that you can elect for half of the interest to be paid free of tax.

But a number of Banks / Building Societies won't allow such a split. Simply because their systems can't handle it. So you either file an R85 for both - or neither, in such cases.

HMRC used to maintain a list. Not in public view, but available via 'phone, many years ago of the institutions that had the capability of handling the split. I haven't stumbled across it for ages - so assume it's no longer maintained.

molerat

R85 has a "Tick box if a joint account".

Surely if Santander can manage it any bank can !!

Mikeyorks

molerat wrote: »

Surely if Santander can manage it any bank can !!

No ....... otherwise I wouldn't have posted the comment?

From HMRC :

If the total taxable income of each party to a joint account is less than their tax-free allowance, they can each complete form R85 and receive their bank and building society interest without tax taken off.

However, if one party doesn't have to pay tax but the other does, it depends on whether your bank or building society will allow part of the interest to be paid without tax taken off and part with tax taken off. If they don’t, the person not liable to tax can claim it back from HM Revenue & Customs by completing form R40

Monkfish_2

Thanks for the help. In regard to splitting the tax declaration -- it is bank specific. Some allow it, some do not. Here's what the tax man has to say on the subject:

http://www.hmrc.gov.uk/tdsi/joint-accounts.htm