Childrens accounts - can they be exploited?

Leighthal

Define 'Exploiting'
I have three young sons and maybe could max out their Halifax Save-4-It accounts at an amount that would just earn enough interest as to avoid tax at the parental rate.I could draw down this interest to pay for birthdays and Christmas etc.Is this 'Exploiting' or just trying to be a good MSE :money: ?

JimmyTheWig

Seen_the_light wrote: »

All my non ISA savings are in the wife's name due to me being a 40% taxpayer and her only working part time.

Is this also tax evasion:p

No, that is specifically allowed. Husband and wife are allowed to freely pass assets between themselves.

JimmyTheWig

Leighthal wrote: »

Define 'Exploiting'
I have three young sons and maybe could max out their Halifax Save-4-It accounts at an amount that would just earn enough interest as to avoid tax at the parental rate.I could draw down this interest to pay for birthdays and Christmas etc.Is this 'Exploiting' or just trying to be a good MSE :money: ?

I don't think that it is fair to use your child's money to pay for their own birthday present!
I don't see why you couldn't use their money, however, to pay for their shoes or winter coat.