savings for expat grandchildren

RichLon

My three young grandchildren, aged 7 months, 3 years and 5 years, live abroad with their parents. As the family is not UK tax resident but still UK citizens, how are they treated by HMRC with regard to interest paid in child savings accounts, ISAs and Child Trust Funds? We would like to open a new savings account for them and make one or two payments annually into it.

xylophone

The CTF and now the JISA are only available to children living in the UK (although if one had been opened for a child who subsequently moved abroad, money could still be added).
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/WhentheChildTrustFundisupandrunning/DG_193638
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672

This might be of interest http://www.toytowngermany.com/lofi/index.php/t71420.html athough it is a few years old. This is the form to which it refers.http://www.hmrc.gov.uk/forms/r105.pdf

If the hassle is too much, you might simply consider sending the money to the parents once a year so that they can open and pay into accounts in the country of residence?

atush

I think you can still open an investment trust savings plan for them.