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Moving Money from one account to another

ned_solanki
Posts: 17 Forumite
Hi All,
Sorry if this has been posted before. New to this site.
I have been saving my first childs, childs benefit in a Sainsburys account for a number of years and it has gone over £6500. I want to move this money into another account which pays better interest, but i am vary that MR IRS might coming knocking on my door. I now have another child and both kids benefits are paid into the same account. I can set up a Standing order to split the monies, but how do I get child A money out without getting hit by TAX ?
Any ideas would be great!!! and thanks in advance
Sorry if this has been posted before. New to this site.
I have been saving my first childs, childs benefit in a Sainsburys account for a number of years and it has gone over £6500. I want to move this money into another account which pays better interest, but i am vary that MR IRS might coming knocking on my door. I now have another child and both kids benefits are paid into the same account. I can set up a Standing order to split the monies, but how do I get child A money out without getting hit by TAX ?
Any ideas would be great!!! and thanks in advance
Named after my cat, picture coming shortly
0
Comments
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Initially the account I assume , was opened in the name of one child. e.g. Mr X & Mrs X for Child A.
If this is so then each parent can give the child an amount of money so the the child's interest does not exceed £100 per year per parent. The amount the child could have in the account would be in the region of £2000 from each parent. i.e. About £4000.
If the interest earned on the account is less than £100 per parent then the money is treated as the child's money and is not taxed ( R85 Form for exemption or claim tax back if not )
The child cannot have more than £100 in interest from money donated by a parent. Not only is additional interest taxed but so also is the first £100 as well.
My guess is that this account should be tax at 20%.
You have put too much into it.
Actually the money in the account should be taxed at the rate paid by the donor of the money.
So if you do not pay tax yourself that might still be nothing to pay.
Now for child B.
You could not give child B money before child B was born.
You have to open a separate account in which to put money for child B.
If, in future, anyone other than the parents gave the children money then the interest on that money is not taxed until the amount of INTEREST exceeds £4600 per annum approx so the child can have about £80,000 in the account before they have to pay tax.
This is not the Tax Man being hard on kids.
It is to stop parents putting their own money into a child's account for say 18 years and then taking it back later on.
In a nut shell you should "fess up" and pay tax on the money in the account................................I have put my clock back....... Kcolc ym0 -
You can put £1000 into Children's Bonus Bonds and not have to worry about any tax consequences. They pay 4.45% tax-free pa AER over a 5 year term.0
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