Savings Account in Joint Names

martynhall1

Hi, I have a joint savings account with my wife. I am a 20% taxpayer with all income from pension drawdown. My wife is a non-taxpayer, and drawdowns £12k per year from her SIPP.

I am trying to understand how this works with HMRC as I believe that I can receive up to a £1000 per year in savings interest tax free. My wife as a non-tax payer maybe able to receive more?

For the 2025/26 tax year that has just ended, HMRC has reduced my tax code for 2026/27 due to interest on savings. We received approx £2700 interest on our joint account for 2025/26, so trying to understand the rules for joint savings account, based upon our circumstances?

Bigwheels1111

Joint account basically assumes interest is 50/50 when reporting to HMRC. So very bad for you.

You £1000 PSA.

Your wife, £18,570 - any wages, pension or benefits etc.

So £18,570 - £12,000 =£6,570.00 of tax free interest would be available.

You need to separate you savings, to be honest it all need to be in your wife’s name.

Then no tax will be taken.

eskbanker

https://forums.moneysavingexpert.com/discussion/6663894/savings-account-in-joint-names

Worth reading through https://www.moneysavingexpert.com/savings/tax-free-savings/

If you have an income tax liability arising from your £1,350 share of interest exceeding your allowances, then you may be able to optimise the situation by making more use of ISAs, or putting more money in your wife's sole name rather than holding it jointly, or even nominating a non-50/50 split:

https://www.litrg.org.uk/savings-property/tax-savings-and-investments/joint-income-savings

jimjames

Worth looking at ISAs if you want the savings to remain in your name

phlebas192

https://forums.moneysavingexpert.com/discussion/comment/81960790#Comment_81960790

No need to transfer all the savings to the wife's name, or even most of them. All that is needed is to move enough to get the OP's share of the interest below £1,000.