Mortgage Rate Rises

[jaybee]

What happens to the tax burden in joint savings accounts when one is on the additional rate and the other is on the basic rate?

I think you have to each declare 50% of the interest gained. Which is stupid.
So higher rate can gain £500 and lower rate can gain £1000 per year.
So the joint amount of the couple would be £1500.
However, if the account generates say £1200 which is under the joint total, you still have to split it down the middle so you would be liable for tax on £100 since it is £100 over your £500 limit.

Please someone correct me if this is wrong.

 

[413x]

I think you have to each declare 50% of the interest gained. Which is stupid.
So higher rate can gain £500 and lower rate can gain £1000 per year.
So the joint amount of the couple would be £1500.
However, if the account generates say £1200 which is under the joint total, you still have to split it down the middle so you would be liable for tax on £100 since it is £100 over your £500 limit.

Please someone correct me if this is wrong.

I believe yes. In a joint account 50pc of the interest is allocated to you and 50 to the other. Regardless of who put in what

 

[EvilRob]

Usually it is just 50:50 however guidance does state:
Where interest arises on an account held in the joint names of spouses or civil partners, each will normally be taxable on half of the interest, under ITA07/S836. Where, however, their beneficial entitlement to interest (or any other income from a jointly owned asset) is not actually 50:50, they may elect to be taxed on their actual entitlement

I'd have thought going with 50:50 is almost always the way to go as the higher contributor may be in a higher tax band.

 

[jaybee]

Usually it is just 50:50 however guidance does state:
Where interest arises on an account held in the joint names of spouses or civil partners, each will normally be taxable on half of the interest, under ITA07/S836. Where, however, their beneficial entitlement to interest (or any other income from a jointly owned asset) is not actually 50:50, they may elect to be taxed on their actual entitlement

I'd have thought going with 50:50 is almost always the way to go as the higher contributor may be in a higher tax band.

I don't understand what you mean. Are you saying you have a choice to go 50:50 or something else?

 

[ChrisD.]

I'm fairly sure the last ~100 posts have nothing to do with mortgages - there's dedicated savings and investment threads, can we use them please?

Where is this thread please?

 

[Dirk Diggler]

Where is this thread please?

Best savings account?

I've got a certain amount of money in a Barclays Everyday Savers account where the interest is very low, about 0.25%. With interest rates going up to 3%, I'm wasting my time keeping my money with Barclays. Can anyone recommend a better place to accumulate more interest?

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[HangTime]

Post moved to other thread.

 

[EvilRob]

I don't understand what you mean. Are you saying you have a choice to go 50:50 or something else?

Yes. However you may then get asked to prove why (i.e. prove one of the account holders paid in 70% so should be entitled to 70% of the interest).

 

[Dirk Diggler]

It's gonna be easier just setting up on the lower tax exposure, in sole name.

 

[jpaul]

(couldn't see how the bond investments were compounded/re-invested in the xls)
e: moreover use the compound savings 'formula'


R4 last night suggesting rishi needs to cut & run, as weekly, 30K odd, voters may flip with lived experience of mortgage renegotiation
interesting to see we are not so different to europe - despite Labours 14years a slave rhetoric.

 

[TNA]

Looks like rates will shoot up yet again.

 

[TNA]

Mine is 88.5% at max load and 98.7% at low load (30% of max).

Which one do you have if you don't mind me asking?

 

[GordyR]

(couldn't see how the bond investments were compounded/re-invested in the xls)
e: moreover use the compound savings 'formula'


R4 last night suggesting rishi needs to cut & run, as weekly, 30K odd, voters may flip with lived experience of mortgage renegotiation
interesting to see we are not so different to europe - despite Labours 14years a slave rhetoric.

Comparing rates in isolation between countries is largely meaningless. What matters is overall affordability when accounting for average income and living costs, of which interest rates are but a single component; and affordability varies wildly between these countries.

I do however find data like this particularly interesting:

 

[413x]

Comparing rates in isolation between countries is largely meaningless. What matters is overall affordability when accounting for average income and living costs, of which interest rates are but a single component; and affordability varies wildly between these countries.

I do however find data like this particularly interesting:

That is quite the graph.

 

[slinxy]

I’ve just heard that student loans interest rates are at 7%!! It true that’s madness.. but brings in light the how mortgage rates how low mortgage rates are even at the current rates as student loans tend only to increase with inflation.

 

[delta0]

Which one do you have if you don't mind me asking?

Worcester Bosch Greenstar. Don’t have the exact model to hand (I think it’s the 4000) but there’s a range of different sizes and styles.

 

[TNA]

Worcester Bosch Greenstar. Don’t have the exact model to hand (I think it’s the 4000) but there’s a range of different sizes and styles.

Yeah was wondering which exact one. We are considering changing in the future and was thinking between the 4000 and 8000. But we don't require high pressure like some really like so the 4000 should do the job I think.

 

[potatolord]

Comparing rates in isolation between countries is largely meaningless. What matters is overall affordability when accounting for average income and living costs, of which interest rates are but a single component; and affordability varies wildly between these countries.

I do however find data like this particularly interesting:

I'm not disputing accuracy, but the issue with graphs like that is it is cherry picking. Well, in my opinion...

A graph showing home ownership within that group would be more helpful. It would show the drop, but in context.

Agree with your point on affordability, by the way.

A quick search turns up this report which has all kinds of interesting points on affordability:

https://lordslibrary.parliament.uk/housing-needs-of-young-people/#heading-1

 

[IvanDobskey]

I think part of the reason is youngsters don't really want to play the long game anymore. They want all the flash toys rather than the slog of saving for a house. Houses aren't exciting or fun and they seem impossibly expensive and purchasing one would mean giving up everything else.

 

[dirtychinchilla]

I’ve just heard that student loans interest rates are at 7%!! It true that’s madness.. but brings in light the how mortgage rates how low mortgage rates are even at the current rates as student loans tend only to increase with inflation.

Mine is at 6.25% atm. Fortunately I'm on plan one with very little left on it. It'll be done within a year. And then I'll have the great fortune of being able to put that money towards the hugely increased mortgage payments...yay