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Posted Tue, 26 Sep 2023 06:41:56 GMT by M_Bean100
Hello, Me and my married partner are UK domiciled Non-resident British expats who have been living in the UAE for 10+ years. We both have separate UK income from property in the UK. My partners UK income is less than £10,000 per year. My UK income is over the £17,570 personal savings allowance. Firstly, is it possible for us to transfer money from the UAE into a joint fixed rate savings account in the UK? Also, as my partner should have a personal savings allowance of £5,000, is it possible to combine our Personal savings allowances for our joint savings account? This should result in a combined personal allowance of £6,000 before any tax is applied to interest earnt on UK savings. Hopefully this makes sense. Kind Regards
Posted Sun, 01 Oct 2023 05:09:47 GMT by M_Bean100
Can anybody help with the above questions. Thanks
Posted Tue, 03 Oct 2023 13:09:06 GMT by HMRC Admin 32

Yes you can transfer funds if your bank will allow it. For the joint accoint, any interest would then be split 50/50 so even if your share of the interest is over £1000, you will still be liable to pay tax on the difference. The combining of the savings rates us not applicable.

Thank you.
Posted Tue, 03 Oct 2023 15:28:26 GMT by M_Bean100
Thanks for the reply. I think I understand what you are saying. For example: If the combined interest we earnt in year 1 was £3,000. Then we would split it 50/50 (£1,500 each). So I pay tax on the £500 which is over my allowance (£1,000). But my partner doesn't pay any tax because their allowance is £5,000. Is this correct?
Posted Mon, 09 Oct 2023 09:56:58 GMT by HMRC Admin 32

The personal savings allowance is still £1000 but as the total income is below the £17570 then she would qualify for the starter rate and that is the £5000 you are referring to.

Tax on savings interest

Thank you.

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