Split Interest

Hello, My wife put our savings that was originally from our joint account into a fixed rate bond account in her sole name only. She didn't realise it was in her name only at the time. And since it is for a fixed term of 1 year, she cannot access the fund to split it into 2 separate fix rated bonds in each of our names. The question is, when we come to complete our tax returns, is it possible to split the interest from the fixed rated bond at the end of the term when she have access to the fund, even though it was paid into her account only? Thanks!

Hi

No.  There is no tax liability on the transfer of assests between spouses and civil partners.  As this interest is solely in your wife's name, she will have to declare 100% of the interest.

Thank you