If you have a joint account with your spouse, HMRC has a simple rule to calculate the tax due:
- Split the interest down the middle
- Apply each spouse’s interest savings allowance to their piece
- Pay tax separately.
- 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.
- 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