Bank Interest Declaration

jaceyboy

Just wondering, when filling out an SA, can I split bank interest between my wife and myself if the money has not been in a joint account, or does it have to go down as one persons interest?

mebu60

It is the account holder's interest. If joint 50/50. Otherwise no.

ColdIron

Are you asking if you can make a fraudulent declaration by misrepresenting your taxable interest?

Pompeydave1967

Think if just in your name it’s to be declared in yours only. Banks will let HMRC know how much interest you earnt so better to be honest. I once spoke to HMRC about a SA issue on interest and the previous year we were only pennies out with what I said I earnt and what was declared by banks to them.

jaceyboy

ColdIron said:

Are you asking if you can make a fraudulent declaration by misrepresenting your taxable interest?

No I am asking the rules!

RG2015

jaceyboy said:

ColdIron said:

Are you asking if you can make a fraudulent declaration by misrepresenting your taxable interest?

No I am asking the rules!

Income tax is always personal and never joint.

If a savings account is in the name of a single person then the interest earned can only be declared for that person.

As noted above, a joint savings account is split 50:50 although HMRC have a caveat suggesting this could be split differently.

"Where interest arises on an account held in the joint names of spouses or civil partners, each will normally be taxable on half of the interest, under ITA07/S836. Where, however, their beneficial entitlement to interest (or any other income from a jointly owned asset) is not actually 50:50, they may elect to be taxed on their actual entitlement."

https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim2420

RG2015

Pompeydave1967 said:

Think if just in your name it’s to be declared in yours only. Banks will let HMRC know how much interest you earnt so better to be honest. I once spoke to HMRC about a SA issue on interest and the previous year we were only pennies out with what I said I earnt and what was declared by banks to them.

I have previously had a breakdown from HMRC of interest reported to them by the banks.

As above, banks report the total interest per bank account. Then they note the amount applied to me and for my joint accounts they applied 50% to my tax account.

jaceyboy

Thanks for the replies I know where I am now

auser99

jaceyboy said:

Just wondering, when filling out an SA, can I split bank interest between my wife and myself if the money has not been in a joint account, or does it have to go down as one persons interest?

Would be quite astounding if that was allowed.
Would mean tax was totally flexible and as and how you fancied declaring it 

RG2015

auser99 said:

jaceyboy said:

Just wondering, when filling out an SA, can I split bank interest between my wife and myself if the money has not been in a joint account, or does it have to go down as one persons interest?

Would be quite astounding if that was allowed.
Would mean tax was totally flexible and as and how you fancied declaring it 

I think the OP has received enough responses to answer his question.