Children's savings

HeadKM

Please could anyone tell me if the £100 limit on tax-free interest on children's savings deemed to have been given to the child by the parent applies to both parents or if, in fact, if there are 2 tax paying parents then the limit is doubled (i.e. £200 before tax payable on interest earned in child's account)

Also, if one has registered the account with R85 form to receive interest gross, how do you then go about paying tax once the interest exceeds the £100 (or £200 depending on the answer to my previous question!)

Your advice would be greatly appreciated

Many thanks
Katie

kedj

Have a look at :-
http://www.moneysavingexpert.com/savings/child-savings-tax-free
which explains the children's tax allowances.

Jake'sGran

I have only ever heard it referred to as one lot of £100. i.e. if the interest on a gift from a parent exceeds this amount I imagine it would need to be declared at the end of the tax year. I have been saving money for my two grandchildren for some time but the interest has not exceeded their allowances. The rules are different for a parent.

baby_boomer

It is £100 interest from gifts from each separate parent.

Dreadful discrimination against children whose parents are sperm donors :rolleyes: .