tax on savings

NickH69

Hi all,
My wife and I are looking at opening a savings account jointly, one of us is a higher tax earner and one basic , how does this work with a joint savings account ?
thanks 

Dazed_and_C0nfused

The interest is split 50:50 between you.

NickH69

Dazed_and_C0nfused said:

The interest is split 50:50 between you.

Hi Thanks 
What I'm trying to understand is the tax payable on savings interest , £1000 limit for basic , however how would the tax payable work and what level would I pay with a joint savings if it got to that level , with a basic and higher earner named on the account . Thanks

Dazed_and_C0nfused

A basic rate taxpayer can have upto £5,999 interest taxed at 0%.

Or just £1,000 taxed at 0%

It all depends on how much of their non savings non dividend income is being taxed at basic rate.  

You have to use any available savings starter rate band before you can use the savings nil rate band(aka Personal Savings Allowance).

What happens with a single account is irrelevant really.  It's the total interest for each individual that counts.

So 50% of a joint account would feed into that total for each of you.

Albermarle

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