We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Kids tax free savings
rick_mse
Posts: 7 Forumite
in Cutting tax
I believe I can put money into an account for my kids and the interest is tax free. Is there any reason why I can't use this to simply get tax free savings ?
0
Comments
-
If you put it in an account for your kids then the money is for your kids.
Others may have a different interpretation than I do................................I have put my clock back....... Kcolc ym0 -
Yes there is a reason why you can't use this to get tax free savings. You are only allowed to 'gift' your child money that earns up to £100 interest per year. If your child earns more interest than this each year across all their accounts then it will be taxed at your tax rate.0
-
There will be an exception to this from April with the Childrens trust fund. Any interest earned in the account/fund will be tax free regardless of the amount.
However, the fund is tied up until the child is 18.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
In addition the amount which can be added in any one tax year, in addition to any contributions made by the government, is a total of £1200 pounds per annum from all sources. Sources means any person who wishes to contribute or any "legal" entity who wants to contribute e.g. Local Council, Charity, school, employer, etc................................I have put my clock back....... Kcolc ym0
-
Local Council
LOL. Wouldnt that be nice
There are rumours and i repeat only rumours that the taxation on childrens accounts will be tightened up after the release of the childrens trust fund.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
There is good reason for thinking that a local council acting "in loco parentis" might add to a Child Trust Account................................I have put my clock back....... Kcolc ym0
-
Are CTFs available for all children of any age (excluding those over 18 of course!) ???0
-
NO.
They are for children born after 31 August 2002.
The government says that you have to draw a line somewhere and so that is where it has been drawn.
Letters go out starting this week.
Vouchers from April 2005................................I have put my clock back....... Kcolc ym0 -
Vouchers from April 2005.
Vouchers will be posted from January 2005 for those born September 2002 - March 20030 -
Thanks for the input. The info on the max input and return particularly useful.
As to the gov. scheme, We'll receive the money for one of our kids, the other's too old.
Rick.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.4K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards