We sort your Self Assessment for you. £119, all in.

Fast, effortless and 100% online.

We sort your Self Assessment for you. £119, all in.

What tax do we pay on interest from a joint account?

We've updated this guide on 12th February 2021

If you have a joint account with your spouse, HMRC has a simple rule to calculate the tax due:

  1. Split the interest down the middle
  2. Apply each spouse’s interest savings allowance to their piece
  3. Pay tax separately.

Example

  • Husband: basic rate taxpayer – gets £1,000 of personal savings allowance
  • Wife: higher rate taxpayer – gets £500 tax-free
  • Interest: £2,000 – half “belongs” to the husband, half to the wife.

Then:

  • Husband pays no tax (uses the entire savings allowance)
  • Wife needs to pay tax on £500 at the higher rate (40%).

What if we don’t want to split the interest 50-50?

You need to prove that you use a different split (for example, one partner put more money in, etc.)

Call HMRC at:

  • If you live in the UK: 0300 200 3300
  • If you live abroad: +44 135 535 9022

Want regular tax tips from us?

Sign up here for important updates, deadline reminders and basic tax hacks sent straight to your inbox.

"*" indicates required fields

We sort your Self Assessment for you. £119, all in.

Fast, effortless and done for you online – the way tax returns should be done. Free to sign up.