joint account tax

sjhunt69

Just a quick question. I am now lucky enough to be able to get some savings behind me and obviously want to avoid paying too much tax on my interest. I pay the higher level of tax but was wondering how the tax would be worked out in a joint account, ie i am a higher rate tax payer but my partner is not?

Any advice is welcome to keep my cash away from the taxman!! I have an ISA and will max my allowance asap.

Mikeyorks

sjhunt69 wrote: »

but was wondering how the tax would be worked out in a joint account,

50% of the interest is considered to be yours. Thereafter it works the same way as a sole account. 20% tax is deducted from interest by your Bank, at source ..... and you are responsible for advising HMRC in order the whole of the interest ascribed to you is charged the further 20%. Either via an SA Return or by reduction of your allowances via Coding Notice.