TSEM9954 - Ownership and income tax: Specific types of property: bank and building society accounts: example 13 - Solicitors designated client account

Solicitors can offer their client a ‘Designated Client account’ where the funds held are identified as belonging to that particular client - for example ‘XYZ partnership - Mr A account’. In this case XYZ partnership is the legal owner and Mr A is the beneficial owner. A is taxable on any interest.

The fact that both names appear in the account title does not signify joint ownership. It is not in the name of ‘XYZ partnership and Mr A’. Here ‘Mr A’ merely designates the account legally held by XYZ that relates to Mr A’s affairs.