Bank and building society interest - Joint accounts

If the total taxable income of each party to a joint account is less than their tax-free allowance, they can each complete form R85 and receive their bank and building society interest without tax taken off.

However, if one party doesn't have to pay tax but the other does, it depends on whether your bank or building society will allow part of the interest to be paid without tax taken off and part with tax taken off. If they don’t, the person not liable to tax can claim it back from HM Revenue & Customs by completing form R40 (PDF 97K).

See an example of how interest is paid to joint accounts.

You can claim for tax to be repaid to you on your share of income from savings held jointly with someone else. But, if you are both entitled to a repayment you must make separate claims on form R40 (PDF 97K).