Declaring Interest On Joint Savings Accounts

[Seight_Returns]

My wife and I have a number of joint savings accounts.

I'm a higher rate tax payer, my wife has given up work for a few years to look after our pre-school age question and so has no income.

Should I be declaring this interest (around 4k or so) on my tax return either in whole or in part ?

[aclivity]

Seight_Returns said:

My wife and I have a number of joint savings accounts.

I'm a higher rate tax payer, my wife has given up work for a few years to look after our pre-school age question and so has no income.

Should I be declaring this interest (around 4k or so) on my tax return either in whole or in part ?

I declare 50% of the interest (we are in a similar situation). The account is named in both names, I asked the tax office what to do, they said this would be OK.

That said, we don't earn much interest, as nearly all of our savings are in the offset accounts against the mortgage. It would probably make more sense to move it out at the moment, though.

[DavidY]

If the account is in joint names I have always declared 50% interest to each party

If yo are a higher rate tax payer and your wife pays no income tax, then you will financially better off transferring all the savings into her sole name.

davidy

[Eric Mc]

Simple answer - yes you should. Half of the interest is yours so you are liable for the full tax due on your share.

As Davidy says. transferring the entire accounts over to your wife's name would remove this problem (although it could create non-tax related problems if you ever fell out ).

Edited by Eric Mc on Monday 5th January 14:30

[cjs]

Do you trust your wife?

Then put the account in her name.

Do I get a case of beer?