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

Fast, effortless and 100% online.  Learn more

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

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

  • 1 min read
  • Last updated 10 May 2022

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

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

Then:

  • Spouse 1 pays no tax (uses the entire savings allowance)
  • Spouse 2 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
TaxScouts Newsletter

Want regular tips from us?

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

Category

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.

TaxScouts Newsletter

Want regular tips from us?

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

Category