720 tax declaration.

I've just produced all my documentation for my 720 tax declaration to my solicitors. I'm still finding it confusing as to what can be taxed and what can't. We have a joint UK current account, is this taxable along with interest earned on my savings account and my company pension. We use our current account to top up my pension each month. Though we have the joint current account, my wife has no income.

The 720 is a declaration of assets if in excess of €50k and is not subject to tax, or at least not if you do not fall into wealth tax territory which I think may be <€700k

Saving and/or cash in the bank are not taxable either, only income derived from them.

Thank you for your reply. So drawing money from a current account is not taxable. There certainly isn't 700 thousand in it.

Always wondered if the €50k threshold is per account or the total of all accounts added together? Maybe someone could clarify using the following example?

EG; you have three separate accounts in different banks each with a £30k balance. Therefore your total assets (£90k) exceed the €50k threshold, so do you need to declare all those individual accounts on the 720?

My confusion is with those 3 separate accounts, are they all taxable or just the interest on them.

Only the interest is taxable but I’m uncertain as to whether any accounts that are under the €50k threshold need to be declared on the 720.

Different opinions say you only need to declare an account with a balance exceeding the €50k

Others say you add all accounts together and if the cumulative total is €50k you need to declare all of them, even those with a £200 balance.

Really grateful to you for taking the time to reply. Hopefully all will be become clearer soon. Just dreading a big tax bill

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Paul M wrote:Only the interest is taxable but I’m uncertain as to whether any accounts that are under the €50k threshold need to be declared on the 720.

Different opinions say you only need to declare an account with a balance exceeding the €50k

Others say you add all accounts together and if the cumulative total is €50k you need to declare all of them, even those with a £200 balance.

Unfortunately if you meet the threshhold to be required to do a 720, you have to declare every single itty bitty account, its seed, breed and generation, when opened etc even if it has only 1p in it. And if you close or open an account in any subsequent year you have to repeat the entire process. You can be fined for errors or omissions. The only good news is that the EU made Spain be more reasonable about the level of potential fines.

Thanks Shiva, on that basis I’ll need to resubmit ours. We’ve got several unused accounts dotted around with £12 here and £2.65 there etc;
Didn’t think they needed to be mentioned so I’ll have to contact lawyers to do the declaration again.