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Buying your Home

Tax on savings: Interest on savings is normally paid after the deduction of 20% tax. If your partner does not work, you can avoid this tax by transferring the account to their name. They can then apply to receive the interest gross.

Your bank or building society will provide the appropriate forms. If either you or your partner pays higher rate tax, similar steps can be taken - this time the savings account should be put in the name of the person paying tax at a lower rate. Interest will not then attract higher rate taxation.

REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.