Issue with Halifax Kids Monthly Saver

Mr._H_2
Mr._H_2 Forumite Posts: 481
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edited 31 July at 10:04PM in Savings & investments

My son and I recently opened a Halifax Kids monthly saver for him, but discovered after setting up the account that it was in my name, not his.

I believe that this has some unfortunate tax implications so I sent off an email to MoneySavingExpert to suggest that they should note in their comparison table that the account is opened in the adult’s name not the child’s.

MoneySavingExpert got in touch with Halifax who responded to say “as it's classed as a children's saver, any interest earned will not affect the adult's personal savings allowance (even if it's set up in the adult's name)”.

I’m not convinced by Halifax’s response. I believe any account in my name should by law be declared to HMRC as my money. What do you lot think?

edited to fix minor typo

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  • jaypers
    jaypers Forumite Posts: 561
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    Hasn’t it always been the case that a child account has to be in the parents name with a ‘In respect of <Child Name>’ stated? 
  • Mr._H_2
    Mr._H_2 Forumite Posts: 481
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    edited 31 July at 10:02PM
    Not as far as I'm aware. I have Santander 123 mini (in Trust) accounts and those are in the children's names (this is verified by the fact that when setting up a transfer to the accounts, you have to enter the child's name for a successful CoP check).
  • wmb194
    wmb194 Forumite Posts: 2,539
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    edited 1 August at 6:43AM
    jaypers said:
    Hasn’t it always been the case that a child account has to be in the parents name with a ‘In respect of <Child Name>’ stated? 
    In my experience it depends on how the bank/provider decides to do it but it will still be a bare trust account* with the child as the beneficiary.

    *Assuming that this was stated in the terms of the account, there can be exceptions e.g., Aberdeen's Investment Trust Children's savings scheme (now being closed down).
  • wmb194
    wmb194 Forumite Posts: 2,539
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    edited 1 August at 6:56AM
    Mr._H_2 said:

    My son and I recently opened a Halifax Kids monthly saver for him, but discovered after setting up the account that it was in my name, not his.

    I believe that this has some unfortunate tax implications so I sent off an email to MoneySavingExpert to suggest that they should note in their comparison table that the account is opened in the adult’s name not the child’s.

    MoneySavingExpert got in touch with Halifax who responded to say “as it's classed as a children's saver, any interest earned will not affect the adult's personal savings allowance (even if it's set up in the adult's name)”.

    I’m not convinced by Halifax’s response. I believe any account in my name should by law be declared to HMRC as my money. What do you lot think?

    edited to fix minor typo

    Don't worry, it's still a bare trust account, it's just the way Halifax does it. Its terms and conditions make it clear that the child is the beneficiary and state that interest "may" (in reality probably will) be reported to HMRC in the Child's name.

    https://www.halifax.co.uk/assets/pdf/savings/pdf/savings-account-conditions.pdf



  • Mr._H_2
    Mr._H_2 Forumite Posts: 481
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    Thanks for the responses. It was just very disconcerting that there was no evidence visible online or in their app that the money was for the benefit of my son. This would also be irritating if I opened another for my daughter, as it would necessitate checking notes each time I needed to know which was which.
  • wmb194
    wmb194 Forumite Posts: 2,539
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    edited 2 August at 3:38PM
    Mr._H_2 said:
    Thanks for the responses. It was just very disconcerting that there was no evidence visible online or in their app that the money was for the benefit of my son. This would also be irritating if I opened another for my daughter, as it would necessitate checking notes each time I needed to know which was which.
    You can rename the account names displayed in internet banking. It takes a few clicks but if you look at the account statements in your 'inbox' you will also see the child's name stated on the statement.
  • Mr._H_2
    Mr._H_2 Forumite Posts: 481
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    wmb194 said:
    Mr._H_2 said:
    Thanks for the responses. It was just very disconcerting that there was no evidence visible online or in their app that the money was for the benefit of my son. This would also be irritating if I opened another for my daughter, as it would necessitate checking notes each time I needed to know which was which.
    You can rename the account names displayed in internet banking.
    Good point
    wmb194 said:
    It takes a few clicks but if you look at the account statements in your 'inbox' you will also see the child's name stated on the statement.
    That's good to know. As it's a newly opened account, there are no statements to look at.
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