TSEM9950 - Ownership and income tax: Specific types of property: bank and building society accounts: example 9: joint names - resulting trust
A provided capital of £250,000 when opening a bank account in joint names with his brother B.
A and B say that the interest on the account should be taxed on each of them equally.
The evidence submitted showed that A was out of the country for frequent and prolonged periods, and his brother B had been named as joint account holder to enable him to operate the account while A was abroad.
The arrangement is purely administrative and confers no beneficial interest on the brother B.
A is taxable on all the interest.