Joint accounts


D

Dave

My father died mid 2003 and held the family (mother and father ) income in
one bank account in his name. It was very difficult to get the bank to
release funds when he passed away and I had real problems with standing
orders being cancelled. It was also very difficult for her to get a bank
account as she has no credit rating or passport.

She now has a current account with on average £800 in it.

She has also opened a savings account with the proceeds of insurance
policies and has £47000 in it. She is taxed on the interest by the bank.

My mother has now asked me change these to joint accounts with her, simply
to make things easier for the future.

I am in part time employed under PAYE and all my allowances are used with
this employment.

Will this create any problems with the tax office as I assume the interest
( that will be taxed) will be in both our names. Will the tax office need to
be advised in advance as I have never had savings before.

I will not really be a joint holder, its simply to make things easier at a
future date.

Thank you and a happy new year.
 
Ad

Advertisements

J

Jonathan Bryce

Dave said:
Will this create any problems with the tax office as I assume the interest
( that will be taxed) will be in both our names. Will the tax office need
to be advised in advance as I have never had savings before.
Only if the interest takes you into the 40% band.
 
D

Dave

Thank you for the reply, no my total gross income is just under £12300
 
D

Doug Ramage

Jonathan Bryce said:
Only if the interest takes you into the 40% band.
It seems the joint a/c is merely an administrative item. If so, the interest
is 100% taxable upon your mother.

However, if she is actually making you a gift of (say) 50% of the money in
the joint account, 50% of the interest will be taxable upon you. But since
it will have 20% deducted, and you are not a 40% taxpayer, there should be
no more tax to pay.
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Joint Account 1
joint account 1
Joint Accounts? 0
Joint Accounts 1
Joint Savings Account 8
Joint Broker Account ! 2
Taxes on joint accounts 2
Joint accounts in Money 0

Top