Childrens Saving With having tax issue

Ginger1

Hi,

I have a couple of children's savings accounts with the Halifax which are paying a rubbish 1% and have just opened Northern Rock accounts paying 3%.

I now need to move the money from each of the halifax accounts to the NR accounts. The easiest way for me is to go to halifax and transfer the money to one of my current accounts and then send a cheque off to Northern Rock for them to deposit in the new accounts.

Is there any issue with regards to transferring this money out of an account which is tax free to my current account, which I pay tax, then into another childs account which is tax free registered? Or am I just worrying about nothing.....??

Thanks in advance

Mikeyorks

Ginger1 wrote: »

Is there any issue with regards to transferring this money out of an account which is tax free to my current account, which I pay tax, then into another childs account which is tax free registered?

No issues whatsoever. You only pay tax on the interest on your account .... and it doesn't suddenly become your money just because you're passing it through?

xylophone

Would the Halifax not draw a cheque in the name of each child so that the money could be sent direct to their accounts?
http://www.hmrc.gov.uk/tdsi/children.htm