JOINT ACCOUNT & TAX

[LittlePebbles]

My father recently passed away and my mother wants to open a joint account in her name and my name. The money would be hers and it is really for ease of access to the account as she is old and frail. For tax purposes would the Inland Revenue class half the money as mine and would I be liable for any tax?

[twix123]

It may be easier to obtain a Pwer of Attorney instead, then there can be no misunderstandings by HMRC.

[dzug2]

It would be better for you to be an authorised signatory on her own account - some banks allow this

Having a joint account can lead to loads of problems unless you are her only relative.

[deeandgee]

We were made trustees in a will several yaers ago for a family member (adult) who in assisted accomondation through social services. the money was left in trust so his benefots would not be affected and we invested it well but now wish to open two normal accounts with no risk to the capital. Any ideas please ??? also it was previously invested in a life policy which covred tax laibility on the trustees...we dont want the bother of completing trusts returns each year. Any help would be much appreciated....

[deeandgee]

oop sorry about that meant to enter it as new question.apologies

[hev]

It really only depends if you are a tax payer yourself, If you are employed and use all your allowances at your employment then the tax will be deducted by the bank at 20%.but your mum could sign an r85 so that she doesnt pay tax on her half of the interest assuming she has allowances left. you could also put the money in an easy access isa no tax deducted from either of you.