Tax free savings for grandchild abroad?

davethetaller

Can anyone advise on the most tax efficient way to save for my young

grandchilds future, perhaps £300 yearly in £50 lumps,...the slightly unusual

bit is that she lives in Europe with her parents,who are both British.

I know that if she lived down the road from me, she could receive gross

interest, but do different rules apply as she lives abroad?

The answer will not surprise me either way, after all, British pensioners having

retired to the warm climate in Spain, still receive their winter fuel bonus!

davethetaller

davethetaller wrote: »

Can anyone advise on the most tax efficient way to save for my young

grandchilds future, perhaps £300 yearly in £50 lumps,...the slightly unusual

bit is that she lives in Europe with her parents,who are both British.

I know that if she lived down the road from me, she could receive gross

interest, but do different rules apply as she lives abroad?

The answer will not surprise me either way, after all, British pensioners having

retired to the warm climate in Spain, still receive their winter fuel bonus!

Final call...Anyone ?

BruceyBonus

I believe you need form R105 (instead of form R85).

I also believe that the account and interest would need to be paid to either your granddaughter or granddaughter's parent(s) as they are the ones living abroad (but don't quote me on that).

There are some details on the HMRC site
http://www.hmrc.gov.uk/tdsi/overseas.htm

This documents gives all the details you will need
http://www.hmrc.gov.uk/pdfs/ir20.pdf