Halifax Childrens Regular Saver

macca64

If I open this account for my sister who is under 16, and save £50-£100 per month, what is the tax position with regards to the interest, can it be paid gross?

ReportInvestor

Yes.

Because it is not a parental donation, the only relevant limit is your sister's personal tax allowance of nearly £5K pa income.

macca64

Thanks, already have a A&L 10% in my name, but looking to save a bit more, so will definately open one of these up if there is no tax to pay on the interest :j

ReportInvestor

That's fine as long as the money is for your sister.

macca64

Ahh ok, I see a problem with my plan. This money is not for my sister, it's for me, although, I'll probably give her some of the interest I get.

If the money is for me, then I can just have the interest on the Halifax 10% regular saver paid net, however I am still allowed to open this account if the money is for me and not my sister??

ReportInvestor

It is important to do the right thing by the Inland Revenue.

macca64

Which would be to have it paid net then :-(