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My husband and wife clients, Mr and Mrs X, sold their jointly-owned main private residence in June 2005. However, Mr X inadvertently deposited the £500,000 sale proceeds into a bank account held in his sole name. He is a higher-rate taxpayer and his wife pays tax at the basic rate. Can the credit interest arising on the bank account be split equally between the husband and his wife for tax purposes by claiming that these funds were held in trust by him for their mutual benefit?
My husband and wife clients Mr and Mrs X sold their jointly-owned main private residence in June 2005. However Mr X inadvertently deposited the £500 000 sale proceeds into a bank account held in his sole name. He is a higher-rate taxpayer and his wife pays tax at the basic rate. Can the credit interest arising on the bank account be split equally between the husband and his wife for tax purposes by claiming that these funds were held in trust by him for their mutual benefit?
On this subject I note that HMRC's form 17 which is used to declare ownership of joint income by husband and wife has two columns one for beneficial interest in property and the other for beneficial interest in any income arising. Is it possible to own property singly but have the income beneficially owned in...
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