This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Joint account: Whose interest?

By Mark McLaughlin, May 2021

Mark McLaughlin outlines the income tax treatment of joint accounts between family members. 

Bank or building society accounts are often held in the joint names of two or more family members. As a general rule, the person liable for tax on the interest credited is the person receiving or entitled to the interest.  

Spouses (and civil partners) 

However, where jointly held property is in the names of spouses living together, they are treated for income tax purposes as beneficially entitled to the income in equal shares.  

This ‘50:50 rule’ is subject to various exceptions. For example, where spouses are beneficially entitled to both the income and underlying asset in unequal shares (e.g. 70:30) if a valid joint declaration is submitted to HMRC within 60 days, each spouse is taxed on the income according to their

This is one of our 2022 Premium articles

To see this article in full and unlock access to our complete library of 2022 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!