Joint Accounts

Always split 50-50 for couples.

It's a 50-50 split and I don't think it can be done retrospectively. The non-taxpayer (assuming it's that applying to one of the participants, rather than one being a standard rate and the other a sometime higher rate taxpayer) has to complete form Inland Revenue form R85.

Hope this helps.

AIUI with bank accounts there is never any decoupling of beneficial interest from ownership. Accordingly the split in attribution of interest earned is always equal and cannot be changed. Therefore the question of whether it can be done retrospectively cannot be answered, it does not arise.

If you want to attribute interest unequally, the way to do it is to open separate accounts in single names and move funds around as required.

It is possible (but I guess not all banks let you do this) to open an account in a single name but to authorise multiple signatories. This gives the effect of an account which two people can operate just as if it were joint, but where nevertheless all the funds are owned by, and hence all the interest is attributed to, just the one account holder. This way you can attribute the interest 100-0. Open two such accounts, one in the name of each individual, and you can attribute interest arbitrarily.

Another way I think interest could be split in arbitrary proportions, and indeed retrospectively, would be to have the account in the name of a limited company of which the two (or more) individuals are shareholders. By ensuring that each individual has a different *type* of share, it would be possible to allocate the interest (net after corporation tax) as dividends in arbitrary proportions. It's a bit of a sledgehammer approach, though, only worth it if the amounts are significant, given that running a company carries nontrivial administrative overheads. But for couples who run a family business as a Ltd Co already, it might be worth thinking about.

Many thanks to the three responders

The main problem is that company accounts tend to pay a much lower rate than individual accounts, so you would be better off paying the tax than having the money in a company account.

Why not just transfer the balance and leave it open?

For the purpose of identifying a tax-exempt body entertainment fringe benefit, and determining whether the expenditure is deductible for income tax purposes, you are treated as though you are a taxable entity.

What the blazes is the relevance of this comment to the question asked?