Deposit Guarantee + Tax

R

raven

Registered User
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Hi,

Myself and my fiancee have recently sold our home. The home technically in my name only. I will be depositing the proceeds (circa 300K) in a lump sum account. Now, the better rates (aside from anglo) are guaranteed only up to 100K per account holder under the government guarantee scheme, eg. Halifax, First Active 12 month accounts. We could open 2 accounts, - under both my own name, and another under my partner's name (thereby having 2 accounts totalling 200K euro) to maximize the government guarantee.

My worry however is that this would be dangerous as it might expose us (specifically my partner) to capital acquisitions tax, as technically I would be transferring the money to her (even though it is our money).

What do people think? Is it best to avoid this for the sake of a small increase in rate?

Thanks in advance.
 
mathepac said:
Potential tax liabilities if OP and partner are not married?
Click to expand...

This is exactly my concern. As far as I know, opening a joint account with my partner would be construed as a transfer of capital to her, and trigger a liability for Capital Acquisitions Tax.
 
Put it in two different banks under your name? Pick the two with best interest rates.
 
Yes, I can do this, but as the sum of money is quite large, I would need to break it into a few chunks and end up not availing of the best possible interest rates.

I am willing to do the above, its not a huge problem. I'm just trying to clarify whether people think, that yes, there would be a potential tax liability, or is it something not to be too worried about.
 
I imagine there would be some liabilities involved in this. Maybe ring revenue and see if someone can clarify the matter for you?
 
good idea, thanks. will update this thread for people's future reference
 
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