Savings & Tax

kirkie_2

I have mentioned something about this before, but can't find it by searching...

I want to open up some kind of a savings account for my 2 kids. One is nearly 6 and the other under 1.

It is quite hard to find a good account unless I put it in either mine or my wifes name. bur then would we pay tax?

I am a little confused, but hopefully someone will show me the ropes...

Thanks in advance.

blinko

yah unforuntaely you will have to pay tax and kids dont, check out https://www.moneysupermarket.co.uk for the best savings

kirkie_2

yah unforuntaely you will have to pay tax and kids dont, check out https://www.moneysupermarket.co.uk for the best savings

That was my 1st port of call, but most of there accounts are for people under 16 and you get a cheque book etc....

dunstonh

The 1 year old will have access to the childrens trust fund which is tax free and has a range of investment areas. There are also a number of tax free options available for the other child although some of the options can come with limitations.

cloud_dog

I have mentioned something about this before, but can't find it by searching...

I want to open up some kind of a savings account for my 2 kids. One is nearly 6 and the other under 1.

It is quite hard to find a good account unless I put it in either mine or my wifes name. bur then would we pay tax?

I am a little confused, but hopefully someone will show me the ropes...

Thanks in advance.

Unless I'm missing something it's not that big a problem (having recently done something similar).

I think (someone will correct if I'm wrong) that all 'childrens' savings accounts (Building Society) *must* be opened in the name of a parent if the child is under the age of 7. But, this does not mean the money, or interest and therefore tax are allocated to the parent.

The account belongs to the child but is in trust until the age of 7.

We opened an account for our daughter with Nationwide (there are higher rates but I have the perception that Nationwide are a gerneally good Society, i.e. not always the best but never the worst) and filled out the R85 form for her interest to be paid gross. We found the Natiowide very helpful.

So, whilst it is opened in your name, in trust, the money and interest belong to your children and any tax is associted with their personal limits. There is a limit that a parent can actually give to their child and I think it is £100 accrued interest p.a.

cloud_dog

ADC_3

If you work for the public sector see if your employer has a credit union. If you don't work for the PS find out if there is a residential CU in your area. When you find one for which you are eligible for membership join it. You can then save regularly and open accounts for your children. Most CUs pay reasonable rates of interest and it's paid gross so no tax is deducted.

cloud_dog

Most CUs pay reasonable rates of interest and it's paid gross so no tax is deducted.

ADC, the fact that interest is paid tax unpaid does not mean you (whoever) will need to consider the tax implications, i.e. get round to paying the nice inland revenue