Can I do this - Child's tax free savings and school fees

jn316

My son has a savings account that I pay into monthly (earning 6% tax free). He is within limits for interest earned etc to be tax free.

I pay his School fees by DD from my current account. Can I use his savings to pay for part of his school fee without incurring tax on his interest?

Or, does the fact that I when I move his money into my current account to pay for the school fee mean I become liable on the tax against the interest gained over the year from his account?

Thanks

Mikeyorks

No - you can do that. The interest earned doesn't attach itself to you.

Education is an accepted good investment!

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10014128
http://www.hmrc.gov.uk/tdsi/children.htm
http://www.hmrc.gov.uk/trusts/types/bare.htm
Tax treatment of money given by parents is covered in these links.