Saving for older children

HAWKYPIG

My daughter is almost 15 and we have saved hard over the years for the inevitable expensive student years. To do this we have used regular savings, FR bonds, childrens accounts etc. I have just been told, however, that these accounts are liable to tax at age 16 unless held in the child's name alone.
Does anyone have any suggestions here please as I am a bit uncomfortable about signing over large amounts of money to a 16 year old to have sole control of!!!!:eek:

dehaani

Is your child a real tearaway then? Doesn't sound like it will want to go to college. If you raise your children well, they don't go spending every last penny on bags of smack.

HAWKYPIG

Thanks Dehaani, no so far so good, but in those difficult teenage years and boys to impress who is to know........our aim was to reduce student debt...in a controlled trickle!!!

opinions4u

HAWKYPIG wrote: »

My daughter is almost 15 and we have saved hard over the years for the inevitable expensive student years. To do this we have used regular savings, FR bonds, childrens accounts etc. I have just been told, however, that these accounts are liable to tax at age 16 unless held in the child's name alone.
Does anyone have any suggestions here please as I am a bit uncomfortable about signing over large amounts of money to a 16 year old to have sole control of!!!!:eek:

I am assuming that the accounts are held in an adults name as trustee for the child.

If this continued beyond the age of 16, tax on interest would have to be deducted at source. The 16+ can, however, claim this back from HMRC if they are a non-taxpayer.