We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 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!

Child Tax Query

My father who lives in South Africa wants to transfer some money over for my son who is 2. It will be transferred into an account in my sons name. What is the maximum he can send without my son being liable for tax?

Cheers

John

Comments

  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    There is no tax on gifts. Your son has a tax free personal allowance this year of £6035, so provided the income from the capital does not exceed this, he will not be liable for tax and you can register to have the interest paid gross.
    £705,000 raised by client groups in the past 18 mths :beer:
  • Thanks Fengirl

    So am I right to assume that if my Dad gave him £100000 and it was invested at an interest rate of 6% he would earn £6000 and therefore not have to pay any tax?

    Cheers

    John
  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    You are correct
    £705,000 raised by client groups in the past 18 mths :beer:
  • Thanks Fengirl :T
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.5K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.5K Spending & Discounts
  • 245.5K Work, Benefits & Business
  • 601.4K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.