2 Children accounts

fattony

I know your only allowed to have 1 child trust fund account, but having read numerous posts on this Im considering opening a stakeholder CTF for the £250 voucher and wondered if it was possible to have a savings account for the little on as well, would I pay tax on it and would I be free to pay money in and out as I wish?

Surely that could be open to tax abuse ie I pay £5k into the childs savings account to avoid paying tax on the interest but then withdraw it at a later date - not my intention but it could be done?

Mikeyorks

If you open it in the child's name you become a 'Trustee' on the account ........ and, yes, you can open one - or several - as well as the CTF. You file an R85 in order to get interest paid gross .... it's not normally automatic

If you start sheltering your own funds in this sort of account (bearing in mind all interest paying accounts are reported to HMRC by the Institutions providing them) ...... you run the risk of all the interest being chargeable at your marginal tax rate :-

http://www.moneysavingexpert.com/savings/child-savings-tax-free

fattony

Thanks, thats worth considering leaving the voucher from the government in a stakeholder account and then open a savings account to save money in. sheltering my money in this account isn't something I intend to do but I can see how easy it could be to do