Nationwide Kids Account Interest

***xyz***

I got the yearly statements this morning for both my kids' Nationwide Smart Accounts.

The interest on these was £164 and £253.

It showed as:

Interest Before Tax £253.80

Tax Paid £0.00

Interest After Tax £253.80

and the same for the second account (but £164).


The thing that worries me is, I thought any interest over £100 is taxed. Or have I got the wrong end of the stick?

RayWolfe

It becomes the parents tax (unless the grand-parents stumped up the cash)and you would have to declare it on your tax return.

debbie42

It is £100 per parent.
As Ray said, gifts from others aren't subject to such restrictions, and the bank can't know where the money has originated. All they will do is follow the instructions to pay gross tax following receipt of an R85 form.