Interest on Joint Accounts

If your PSA is £1000 in the tax year and me and my wife have £20000 in a savings account we will get about £900 per year in interest at 4.8% this year? But does that mean we won’t get taxed on interest if we put in another £20K at 4.8% so we will get approx £1800 interest next year as ours is a joint account we will have our PSA split at £1000 each so we avoid paying tax if that makes any sense? All help is much appreciated.

Name removed admin .

Hi,

The interest in the joint account would be split 50/50 between you and your wife. If your share of the unaxed interest is below £1000 then you would not pay tax on this as long as you are not a higher rate tax payer. You can see guidance here: 

Tax on savings interest

Thank you.