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Tax on child savings
Shrewsbury_Lass
Posts: 2 Newbie
Am I right in thinking that if my child earns £400 interest on their savings, tax is taken at 20% as that is the rate I pay tax at?
0
Comments
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Shrewsbury_Lass wrote: »Am I right in thinking that if my child earns £400 interest on their savings, tax is taken at 20% as that is the rate I pay tax at?
no
if the child's saving come directly from you, then the interest is attributed to you and you are liable to tax if over £100pa per parent.
This is not automatic so you need to advice HMRC
if the money comes from say grandparents, aunts uncles etc then they are taxed like an adult (i.e. have a personal allowance of 10,600 etc)0 -
https://www.gov.uk/savings-for-children
The personal allowance is currently £10,600 as the link from the link shows, not the £10,000 cited!0
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