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Is it viable to use a childs account for saving???
smeghead_3-2
Posts: 32 Forumite
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Hi all....Is it a viable option to use a childs account to save in?
Thus far following Martins advice I have transfered accounts, and opened up ISA's, so far giving me about £500 extra (in interest) per year.
But !!!!!! Looking at the figures, would it not be an idea to open an account in my childs name....and transfer all our money into it, and run it as a current account????
It pays much better interest than the best ISA's....But.....Would Gordon Brown be happy??
I await your inspired knowledge........(And a spelcheker)
Hi all....Is it a viable option to use a childs account to save in?
Thus far following Martins advice I have transfered accounts, and opened up ISA's, so far giving me about £500 extra (in interest) per year.
But !!!!!! Looking at the figures, would it not be an idea to open an account in my childs name....and transfer all our money into it, and run it as a current account????
It pays much better interest than the best ISA's....But.....Would Gordon Brown be happy??
I await your inspired knowledge........(And a spelcheker)
Sorry No Links in Signatures by site rules - MSE Forum Team 2
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Comments
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Gordon Brown would not be happy. You can put money into your childs account providing it does not add up to more than £100 of interest per parent (in total across all accounts). If the money that you 'gift' your child starts earning more than £100 interest all the interest will be taxed at the parents tax rate.
Nice try.0 -
I have done the maths ???, and this means at 5% interest
you can have a 'floating' ::)account that you can maximise upto £4000 
....Is this not a good idea.... 
mmmmmmmmmm..Maybe this thread will get me nominated for tip of the month??? 8)Sorry No Links in Signatures by site rules - MSE Forum Team 20 -
£4K at 5% interest is £200, and falls foul of the threshold.
With maths like that, you might end up in a different kind of tip. I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0 -
Diggingout you are a comedy genius
. I believe it's £100 per child and not per parent. 2012 money saving challenge:
Saved: £16,222
Target: £12,0000 -
Diggingout you are a comedy genius
People have laughed at my face all my life. Except when they cry.... :-/I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0 -
AFAIK you can 'gift' upto £3,000 per year per person. Does this mean parents can't 'give' their own children any money - since otherwise your child [each] becomes a 'free-standing ISA' in effect ???
The '£100 rule' looks very crude. Surely there must be an 'amount' which a parent may gift to a child and thereafter becomes the 'property' of that child? Why else do we have the personal allowance given at birth if any asset in the child's name is deemed to have come from an 'illicit' source?.....under construction.... COVID is a [discontinued] scam0 -
I'm surprised at the questioning of the £100 rule by some more regular members of this forum. I thought we had covered this many times before.
Anyway, here goes, from Page 24 of IR110 - Bank and Building Society Interest - A guide for savers
Quote:---
Be Careful
There are special rules if the savings have been given by a parent. If gifts from a parent produce more than £100 gross income a year, the whole of the income from the gifts is normally taxed as that parent's income. A child cannot get back any tax on that income. Nor can interest paying accounts be registered to have interest paid without tax taken off.
The £100 rule applies separately to each parent.
----
This £100 rule is in place to stop the very thing from which this thread originated - parents hiding their savings from the taxman in their childrens name.The '£100 rule' looks very crude. Surely there must be an 'amount' which a parent may gift to a child and thereafter becomes the 'property' of that child? Why else do we have the personal allowance given at birth if any asset in the child's name is deemed to have come from an 'illicit' source
Hope that clears things up. 0 -
It is a daft rule.
For example I use up my annual £3,000 allowance by giving it to my Dad
My Dad then gifts £3,000 to my child using up his allowance as he is entitled to do so as he is not the parent of the child.
I could also put my allowance in the name of my nieces or nephews and we haven't even got into drawing up formalised loan agreements.2012 money saving challenge:
Saved: £16,222
Target: £12,0000 -
I'm surprised at the questioning of the £100 rule by some more regular members of this forum.
Oh, well, we aren't all tax experts, after all.
That's why:You should always seek the advice of Papa Smurf before making any major financial decisions. I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.
If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?0 -
Oh, well, we aren't all tax experts, after all.
Ha, Ha, If only...!That's why:
You should always seek the advice of Papa Smurf before making any major financial decisions.
LOL
As bonecold1 said you are a comedy genius.
What a funny guy! 0
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