joint account but not joint interest?

london_lasher

hi all,

i am lucky enough to have some savings currently in a decent savings account but unfortuneatly as my wife and i are both higher rate tax payers this is getting taxed at 40%.

My wife is due to give up work shortly due to us having an impending arrival and as such her earnings will fall below the higher tax rate threshold.

Am aware that i could simply transfer our savings into her name so she would just pay the basic rate but as they are my savings we would both be more comfortable in a joint acount.

I had read somewhere that with some joint accounts you can elect to have the interest applicable to one or the other account holder only, rather than being split 50/50. so i could elect she would receive 100% of the interest and thus only pay the basic rate of tax on all interest earned.

Does anyone know if such a product exists?

thanks in advance,

chris.

merlinthehappypig

My understanding was that HMRC split the interest 50/50 on joint accounts irrespective of the wishes of the account holders.

If not, I'd happily have all our savings account in joint names, to give the £70000 protection, whilst having all the interest allocated to my wife who doesn't pay tax.

I doubt such a product exists, but would be interested if it did!