Childrens savings and tax

In_For_A_Penny_2

I am currently in the process of setting up a Halifax Young Saver account (3% gross) for my 1 year old child. I currently also have a JISA with maximum contribution.

My thoughts were that I would use the Young Saver account (which I understand remains in my name and I can access at any time) for gifts from other family members thus negating the £100 rule.

How do people generally “prove” gifts came from grandparents etc and not from the parent as a means to avoid paying tax on savings? Or is it a non-issue and HMRC never query it anyway?

I have keep photocopies of cheques/birthday letters etc but is this generally sufficient?

antrobus

In_For_A_Penny wrote: »

...How do people generally “prove” gifts came from grandparents etc and not from the parent as a means to avoid paying tax on savings? Or is it a non-issue and HMRC never query it anyway?....

It's a non-issue and HMRC never query it anyway.

Not if you're talking about £20 here, and £150 there. If darling Emily (or whatever) was suddenly in possession of £250,000 gifted by a doting rich uncle I suppose someone might ask.