Paperwork when investing is important
When you are investing lump sums, generally on deposit, your bank will ask for the account name and an IRD number. It is important if these are joint funds, you advise the bank so, and provide IRD numbers for each of the individuals concerned.
If for convenience you simply set the investment up in one person’s name, Inland Revenue take the view that any interest earned is deemed to belong to that person alone, as that is what the bank interest certificates will show.
This can incur extra tax cost as we have to return the income under the name of the person who owns the account, rather than splitting income between the individuals.
So, if you are investing joint money ensure you advise your bank accordingly.
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