About Personal Saving Allowance

Hello admin, My wife and I both have an annual salary of £12,570. We jointly have £100,000 in cash savings with an annual interest rate of 4%. To fully utilize the £1,000 personal savings allowance each year, could we transfer the savings to each other’s account halfway through the tax year? (We are not considering splitting the savings in half from the beginning, as the interest rate would decrease.) Thank you :)

Hi,

On the joint account the amount for the untaxed interest would be 50% for each of you. At the tax year end HMRC would calculate any tax due based on the untaxed interest supplied by the

bank/building societies. You would need to contact the bank to see if you could transfer the savings. 

Thank you.