Paying tax on savings

yorkshirecath

Hi
My Husband works Full Time and recently drew his works pension with a lump sum.
I'm a Full time stay at home Mum.
Hubby effectively gifted me the lump sum of money (100k) for a nest egg after he's gone (although i realise i could go first!) and for future security which i have put in my Chase savings account earning interest. 
Hubby earns about £70k a year so 40% tax and i earn carers allowance for my son who has special needs and is in receipt of PIP.
Do we need to inform the tax office because of the interest earned on these savings?
We've had nothing but trouble with them in the past so am loath to leave it and get a huge bill.
Thanks 

[Deleted User]

If your only other taxable income is from carers allowance there is no need to inform HMRC of anything!

yorkshirecath

[Deleted User] said:

If your only other taxable income is from carers allowance there is no need to inform HMRC of anything!

Even though it was initially my husbands money?

jeremygiles

If you have £100k in the Chase account paying 2.7% interest, you'll be earning £2700 interest over a year - I though you were only allowed to earn £1000 interest before having to declare it? Or would the £2700 just be part of whatever your personal allowance is for the year?

Albermarle

yorkshirecath said:

[Deleted User] said:

If your only other taxable income is from carers allowance there is no need to inform HMRC of anything!

Even though it was initially my husbands money?

That makes no difference. He/you can gift what you like, to anyone you like. The only implication is that whoever you gift it to, then it is legally theirs. Many people transfer savings to the spouse who is a non/low taxpayer, to avoid paying tax on savings interest.
Caveat is that giving large gifts can have implications for inheritance tax, although when the gift is from spouse to spouse, even that is not normally relevant.

molerat

jeremygiles said:

If you have £100k in the Chase account paying 2.7% interest, you'll be earning £2700 interest over a year - I though you were only allowed to earn £1000 interest before having to declare it? Or would the £2700 just be part of whatever your personal allowance is for the year?

Yes, it is just income which can have special tax treatment if you have used up all your personal allowance elsewhere.

Dazed_and_C0nfused

jeremygiles said:

If you have £100k in the Chase account paying 2.7% interest, you'll be earning £2700 interest over a year - I though you were only allowed to earn £1000 interest before having to declare it? Or would the £2700 just be part of whatever your personal allowance is for the year?

You only need to "declare" it if it's either more than £10,000 or you already complete Self Assessment returns for some reason.

Otherwise HMRC will review things and advise if any tax is payable once the bank/building society have sent in details of the interest.  Which they have to do by 30 June each year.

The £1,000 is only relevant if you have used all of your Personal Allowance and any available savings starter rate band (upto £5,000 interest taxed at 0%).

Based on what the op has posted her Carers Allowance (which is taxable) and interest would have to be more than £18,570 for any tax to actually be payable.

[Deleted User]

yorkshirecath said:

[Deleted User] said:

If your only other taxable income is from carers allowance there is no need to inform HMRC of anything!

Even though it was initially my husbands money?

1) There is no tax on gifts in the U.K. 
2) it’s your money now!

yorkshirecath

Thanks everyone, much appreciated