Long Term Savings 17 Year Old

xylophone

Would you mind elaborating on the £100 per parent rule please. thanks

From the links referenced in my post above.

There’s usually no tax to pay on children’s accounts.

Tell HMRC if, in the tax year, the child gets more than £100 in interest from money given by a parent. The parent will have to pay tax on all the interest if it’s above their own Personal Savings Allowance.

You must also tell HMRC if a child has an income over their Personal Allowance, eg from a trust. The child will have to pay the tax on this.

The tax year runs from 6 April to 5 April each year.

The £100 limit doesn’t apply to money:

• given by grandparents, relatives or friends
• in a Junior ISA or Child Trust Fund

Children are entitled to income tax allowances in the same way as adults. And, depending on their income, they may or may not be taxpayers. 

Be careful. There are special rules if the savings have been given by a parent. If gifts from a parent produce more than £100 gross income a year, the whole of the income from the gifts is normally taxed as that parent's income. A child cannot get back any tax on that income.

 The £100 rule applies separately to each parent

The £100 rule applies to income arising each year. It does not matter whether the money in the account is comprised of part capital and part added interest. The £100 rule applies as long as income is over £100 in any one year for any one child from one parent.