Savings Taxed for Children Living Overseas

Liz_the_Whizz

When she died, my Mum left money in Black Cat Saver accounts with the Cheshire Building Society for each of her three grandchildren. This currently pays 5.55% gross (4.44% net).

Two of the grandchildren (my nieces) live in France and are apparently not therefore eligible to receive gross interest.

Thus, at age 18 when we intend to give them access to the money, they will have a much lower sum from their granny than my son who has his interest paid gross.

Is there any way to make their account tax-free? The amounts are not huge but as the new trustee, I want to do the best for them as my Mum would have wished.

Any alternatives gratefully received.

purch

Childrens Bonus Bonds pay 5.10 Pct Tax Free if held for 5 years

gt94sss2

Whoever you end up opening accounts with.. your nieces may qualify for having interest paid gross via a R105 form

Regards
Sunil

Liz_the_Whizz

Thanks, guys. As a first step, I'll approach the Cheshire to see if they are receptive to the R105 approach, but I'll look into the bonds etc for the longer term.