Re: What income counts against Age Allowance?

In message <4du9ucF1cfbgpU1@xxxxxxxxxxxxxx>, Roger Mills <watt.tyler@xxxxxxxxxxxxxx> writes
I have a supplementary question. My father-in-law has lived with us for
about a year. He receives Age Allowance, and has pension income etc. *below*
the £20,100 threashold. He is about to sell his house - and when the
proceeds from this are invested, his total income will be *above* the
threshold

What makes you think that? These days it is relatively easy and cheap to wrap the investment up so that no tax would be payable and the "income" would not be regarded as income for the purposes of the Age Allowance so long as the income did not exceed 5% per annum. See an IFA who is knowledgeable about offshore bonds and cash accounts (most aren't)
- but wouldn't be if he only received 50% of the investment
income.

If he were to open a joint account with my wife, and put the house money
into it, would the interest be treated for tax purposes as being split
50/50

yes,
- or would the source of the capital be taken into account?

Not if it was a genuine gift.
My
understanding is that it would be 50/50 for a married couple - but I'm not
sure whether it's different when the people sharing a joint account are not
married to each other. Can anyone please clarify?
The legal status between the parties is irrelevant.

I wouldnt advise him to do that though because (no disrespect intended), death, divorce, bankruptcy and intra family disputes could wreck the situation.
--
John Boyle
.

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