Tax free status

bitemarx

I have a fixed rate regular saver with Halifax which I opened last January in my 2 year old son's name. It's coming to term in Jan 2010 and I would like to withdraw the money (plus interest) and put it into an ISA.
Is this possible without any taxes coming into the picture?

Also, in the event that I decide NOT to put it into an ISA, can I place the money into a fixed rate savings account with another bank and NOT attract any tax?

Help!
Thanks..
M

:eek:

Lokolo

You can't put the money into an ISA in your son's name. Only your name. You have to be 16 to have an ISA.

However, as the money is in your sons name at the moment it won't have any tax payable unless interest is over £100 (of which anything over this is taxed 20% or whatever you tax rate is) as the money has come from you.

bitemarx

Lokolo wrote: »

You can't put the money into an ISA in your son's name. Only your name. You have to be 16 to have an ISA.

However, as the money is in your sons name at the moment it won't have any tax payable unless interest is over £100 (of which anything over this is taxed 20% or whatever you tax rate is) as the money has come from you.

Erh, yes, I meant putting it in my name, not my son's.

Lokolo

bitemarx wrote: »

Erh, yes, I meant putting it in my name, not my son's.

Oh right then yes you can do that and not attract any tax.

For the second part of putting into another normal savings bond without attracting tax. It would depend how much we are talking about. As per my post above, the money came from you and is in your son's name. There is a £100 tax free interest band, anything above that is taxed at the parents rate.

bitemarx

Thank You, Lokolo.