Phill Townsend

Sorry for the misunderstanding - I was giving an illustrated example, not citing a personal matter. My query refers specifically to the reference from SAIM2420 re: interest on Joint Bank Accounts: (paraphrased for brevity) "Where... beneficial entitlement to interest ... is not actually 50:50, they may elect to be taxed on actual entitlement." So, although interest on a Joint Bank Account is deemed to be split 50:50 by default... Can Joint Account Holders, in fact, elect for a different percentage (eg 60:40) for their division of interest entitlement.

As I understand it: For a couple both on the Basic Rate Tax Band each person has a Starting Rate for Savings of £5,000 reduced by £1 for every £1 over £12,570. However, if Marriage Allowance has been applied to the couples Tax Allowances... Partner-A would have a Basic Rate Tax Allowance = £11,310 Partner-B would have a Basic Rate Tax Allowance = £13,830 gov.uk/apply-tax-free-interest-on-savings states: "If your other income is £17,570 or more you are not eligible for the starting rate for savings." Is this pedantically correct or just illustrated guidance? How would the Starting Rate for Savings be applied to a couple claiming Marriage Allowance? I can see 3 likely scenarios: A) Each partner retains their £5,000 Starting Rate Allowance, the upper limit for 'other income' becoming £16,310 and £18,830 respectively. B) The Upper limit is retained at £17,500 and the Starting Rate Allowance adjusted to £6,260 and £3,740 respectively. C) Both the Upper Limit of £17,500 and the £5,000 Allowance are retained, effectively reducing the savings limit to £3,740 on one of the partners. Scenario (A) seems the most likely but I would appreciate confirmation/clarification. Thanks.

I understand that, Interest earned on a Joint Bank Account is, by default, split 50/50 for tax liability purposes. However, from SAIM2420: "Where interest arises on an account held in joint names ... each will normally be taxable on half of the interest. Where, however, their beneficial entitlement to interest ... is not actually 50:50, they may elect to be taxed on their actual entitlement." Does this allow for a situation where, Spouse A could claim £1,000 interest, while Spouse B would claim the rest (£1,000 +). This would be advantageous where Spouse A was earning in excess of £17,570 (Savings Interest Limit) while Spouse B was earning significantly less, (allowing Spouse B to claim the interest tax free).