tax on joint savings account?

by **mylifestory** on Wed Aug 25, 2010 10:31 pm

i have a joint savings account with my mum & wondered if anything were to happen to her would i have to pay tax on half of it?

thanks

by **Lee Young** on Wed Aug 25, 2010 10:58 pm

At least half the account is in mum's estate and if her estate is over the available nil rate band threshold(s) then yes IHT would be payable on the estate as a whole.

If the account is joint for administrative ease and actually all of it is your mum's then in fact all of the account is in her estate for IHT purposes notwithstanding that it is in joint names.

by **maths** on Thu Aug 26, 2010 7:45 pm

Bank accounts can be tricky.

May i suggest you also look at
http://www.taxationweb.co.uk/forum/joint-bank-account-at-death-t31575.html

by **mylifestory** on Thu Aug 26, 2010 9:30 pm

very interesting - thank you.

we have the joint account as my mum isnt very responsible & if she had her own account itd only be another thing for me to run aswell as my own.

it is the only account we have, she has a small pension and part of a rent paid into her current account which she spends each month.

this account has my tenants rent paid in & other money paid in to me as well as my wages when i work.

would i be able to prove that it was all mine, or would they question it as its over £100K ?

any thoughts greatly appreciated.