Working holiday abroad and income/savings

FussyPants01

Any advice, please? My daughter (aged 20) is in her final year of uni. Her income last tax year was £750ish...so well below tax threshold. Next summer 2026 she hopes to do a working holiday in Canada. What are the income tax implications/what does she need to do AND she has about £21,000 in an ISA saved by yours truly. Better rates are available in NON ISA but obviously, it will then lose the tax benefits and cannot all be re-invested. She doesn't need access to the money for 1 year plus at least. Thank you!

Mark_d

The employer in Canada will take care of tax on your daughter's Canadian earning.

Bit of a waste giving so much money to your daughter.  She doesn't need it but it could make a huge difference to some people.

wmb194

FussyPants01 said:

Any advice, please? My daughter (aged 20) is in her final year of uni. Her income last tax year was £750ish...so well below tax threshold. Next summer 2026 she hopes to do a working holiday in Canada. What are the income tax implications/what does she need to do AND she has about £21,000 in an ISA saved by yours truly. Better rates are available in NON ISA but obviously, it will then lose the tax benefits and cannot all be re-invested. She doesn't need access to the money for 1 year plus at least. Thank you!

£21k is only slightly above the annual Isa allowance for adults so it shouldn't be a big deal if it was in a better paying taxable account for a while as a non-taxpayer and it shouldn't be a problem to replace in the future.

Newly_retired

Your daughter can have at least £1000 on interest free of tax if she wants to move money elsewhere. Depending on her earnings, she might have a higher tax free savings allowance, so an ISA may not be crucial.