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Posted Thu, 03 Aug 2023 15:23:43 GMT by
I understand that banks report interest paid on savings accounts to HMRC. My wife and I have a joint savings account. Is the interest automatically allocated between us for taxation purposes?
Posted Tue, 08 Aug 2023 14:48:24 GMT by HMRC Admin 5
Hi

Yes it is automtically split 50/50.

Thank you
Posted Tue, 08 Aug 2023 18:11:50 GMT by
Hi My situation is slightly different but thought I can ask here as a reply. My wife, my son and myself moved to the UK in July, 2016. Since then, I have been receiving salary after tax deduction so I never filled a self -assessment tax return. My wife was a housewife until 2021, when she opened a small Airbnb business. When we filed the first tax return in January 2023 for the business, it was the first time we all realised about the foreign income tax. Before that, we had no idea about it. Actually, I opened an Indian NRE savings account a long time ago and I had initially requested to make it a joint account with my wife but for some reason, we recently found out that this is solely in my name and my wife is nominee only. Before 2016, my wife and I were remitting money from the countries we were living in at that time to India to make fixed deposits in joint name and the interest was deposited in the said NRE saving account. My question is that shouldn't the tax on interest be split 50/50 since my wife is definitely entitled to half of the money of fixed deposits amounts. She was working previously in the other countries so she was earning the money that she was remitting to make the joint fixed deposits. I would really appreciate it if you can help me. Also, when I was reading the guidelines on foreign income tax, I came across FTC penalties. Will these apply to our case? Thank you. Kind regards,
Posted Fri, 11 Aug 2023 11:45:26 GMT by HMRC Admin 10
Hi
Interest arising in a foreign bank account, in a tax year that owners of the account were not resident in the UK, is not taxable in the UK.
As you became resident in the UK in 2016, it would be from that tax year, that the interest would be subject to UK.  
As the account is not a joint account, only you would be taxable on the interest, as the beneficial owner of the account.
 
Posted Sat, 20 Apr 2024 07:26:26 GMT by Debra Coulson
I have a joint account with my dad. All the money in the account is his, I am on as a joint account holder to assist him and make things easier when he dies. The interest earned is within his £1000 tax limit. However if this is split 50 / 50 my half will take me above my £1000 limit as I have savings of my own as well. I work full time and am paye. He has pensions and is also a tax payer. Can the interest earned on the joint savings account be all put against his £1000 limit?
Posted Thu, 25 Apr 2024 15:11:50 GMT by HMRC Admin 5
Hi Debra Coulson

As it is in joint names it will be 50/50. you can send in a declaration of trust signed by both of you to state that your father is the beneficial owener of 100% of the interest to
HMRC PAYE & Self Assessment
BX9 1AS

Thank you

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