Halifax Childrens Regular Saver

Bisoy

Exceller8 thank you so much for that very useful information.

As what Cypher said it's not very good news to all decent parents wanting to save for their children. Why would this government not encourage parents to save for their children by making their rule flexible. I can't understand it why if money comes from relatives doesn't apply to this rule, surely you could just ask any of your relative to pretend that the money comes from them which in fact it comes from your pocket.

Also I might need to cancel our registration with YBS for gross interest as it would make way over the £100 rule.

I need to review our savings portfolio and perhaps concentrate on adult regular saver accounts.

realaledrinker

Bisoy wrote:

you could just ask any of your relative to pretend that the money comes from them which in fact it comes from your pocket.

Er, ask them to participate in a fraud, you mean.

...

Has anyone ever heard of an instance where the taxman has caught up with a taxpayer whose kids are earning over £100 interest which he has not declared as his own?

...

I can see the need for this rule (as otherwise parents would transfer all their savings into underage children's names) but the £100 hasn't gone up for donkeys years & seems rediculously stingy.

Bisoy

realaledrinker wrote:

Er, ask them to participate in a fraud, you mean.

...

Has anyone ever heard of an instance where the taxman has caught up with a taxpayer whose kids are earning over £100 interest which he has not declared as his own?

...

I can see the need for this rule (as otherwise parents would transfer all their savings into underage children's names) but the £100 hasn't gone up for donkeys years & seems rediculously stingy.

I bet you don't have children or in my case underage children.

My original post is about inquiring how the £100 rule works. I am in no way trying to break the law by commiting fraud by asking relative to put money to our children's name as we don't have any relatives in this country.:mad:

Cypher

realaledrinker wrote:

I can see the need for this rule (as otherwise parents would transfer all their savings into underage children's names) but the £100 hasn't gone up for donkeys years & seems rediculously stingy.

Its hardly the crown jewels. They should allow a parent to save a nominal amount per year for each child. We ain't talking about parents snaffling away their life savings but allowing £1200 a year to be saved for a child seems much more reasonable. £1200 per year would make a big difference to a child thinking of going to university or buying their first house. With house prices rising as they are our kids need all the help they can get. Most will never be able to afford a home no matter how committed their parents are.

:mad:

Sadly I've never been in a position for this to effect me, as I would guess the majority of people are. I wish I could have saved £1200 for myself let allow for my kids.

Exceller8

I know this post is about the £100 rule. I just thought that if you were looking to save for you childrens future. I was reading a page about inheritance tax recently and im sure you can give your children up to £3000 tax free per year if so does any one Know how this is done? Could you not put this into an account of their own? E.g S F it 5.3% or other childs account. (just a thought). XLR8

realaledrinker

The £3K you refer to relates only to Inheritance Tax. Any gifts made within 7 years of death are potentially liable to IT but there are a few items that are disregarded - such as 'regular gifts' of up to £3K

ajwt2

this is an old thread I know, but worth brining up again due to the new Child Saving rules. Surely now you just place the money in a child saving account which acts a bit like an ISA and hence you dont have to worry about the tax on it at all?

Leighthal

ajwt2 wrote: »

this is an old thread I know, but worth brining up again due to the new Child Saving rules. Surely now you just place the money in a child saving account which acts a bit like an ISA and hence you dont have to worry about the tax on it at all?

AFAIK if the childs account earns more than 100 quid interest then it is taxed at the parents(trustees) rate.(thats the whole lot,not just anything over the 100 quid).Someone please correct me if I've understood wrongly.