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  • FIRST POST
    • alandaniel132
    • By alandaniel132 9th Aug 18, 8:41 PM
    • 158Posts
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    alandaniel132
    Which type of Saving account is consider Personal Savings Allowance?
    • #1
    • 9th Aug 18, 8:41 PM
    Which type of Saving account is consider Personal Savings Allowance? 9th Aug 18 at 8:41 PM
    Which type of Saving account is consider Personal Savings Allowance?

    Is ISA saving account consider Personal Savings Allowance?
    And is Children account consider Personal Savings Allowance?
Page 1
    • AnotherJoe
    • By AnotherJoe 9th Aug 18, 8:45 PM
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    AnotherJoe
    • #2
    • 9th Aug 18, 8:45 PM
    • #2
    • 9th Aug 18, 8:45 PM
    An ISA is not considered, any income is not taxable.
    A children's ISA is, if there is more than 100 interest.
    • masonic
    • By masonic 9th Aug 18, 8:50 PM
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    masonic
    • #3
    • 9th Aug 18, 8:50 PM
    • #3
    • 9th Aug 18, 8:50 PM
    There's a good explanation of taxation on child savings accounts here:
    https://www.moneysavingexpert.com/savings/child-savings-tax-free/#taxing
    Short answer, it depends on where the money has come from.

    My understanding is a Junior ISA has the same tax treatment as an adult ISA and therefore no tax is payable, even if there is more than 100 interest.
    Last edited by masonic; 09-08-2018 at 8:54 PM.
    • alandaniel132
    • By alandaniel132 9th Aug 18, 8:50 PM
    • 158 Posts
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    alandaniel132
    • #4
    • 9th Aug 18, 8:50 PM
    • #4
    • 9th Aug 18, 8:50 PM
    So Children saving account, have interest more than 100 is Personal Savings Allowance?

    https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance#what-counts-as-savings-income

    and

    3. If your taxable income is less than 17,500
    If your total taxable income is less than 17,500 you will not pay tax on any savings income.
    • masonic
    • By masonic 9th Aug 18, 8:56 PM
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    masonic
    • #5
    • 9th Aug 18, 8:56 PM
    • #5
    • 9th Aug 18, 8:56 PM
    So Children saving account, have interest more than 100 is Personal Savings Allowance?

    https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance#what-counts-as-savings-income

    and

    3. If your taxable income is less than 17,500
    If your total taxable income is less than 17,500 you will not pay tax on any savings income.
    Originally posted by alandaniel132
    If the money has come from a parent or step parent, the interest is treated as having been earned by that parent and comes out of their allowances.
    • alandaniel132
    • By alandaniel132 9th Aug 18, 9:44 PM
    • 158 Posts
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    alandaniel132
    • #6
    • 9th Aug 18, 9:44 PM
    • #6
    • 9th Aug 18, 9:44 PM
    Personal Savings Allowance
    Earn up to 1,000 savings interest tax-free

    https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance#what-counts-as-savings-income
    1. Introduction
    From 6 April 2016, if you!!!8217;re a basic rate taxpayer you!!!8217;ll be able to earn up to 1,000 in savings income tax-free.


    Is 1,000 interest earn from any saving account is calculate per year or per month?
    • masonic
    • By masonic 9th Aug 18, 9:59 PM
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    masonic
    • #7
    • 9th Aug 18, 9:59 PM
    • #7
    • 9th Aug 18, 9:59 PM
    Is 1,000 interest earn from any saving account is calculate per year or per month?
    Originally posted by alandaniel132
    Per year.................
    • alandaniel132
    • By alandaniel132 9th Aug 18, 10:55 PM
    • 158 Posts
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    alandaniel132
    • #8
    • 9th Aug 18, 10:55 PM
    • #8
    • 9th Aug 18, 10:55 PM
    The standard Personal Allowance from 6 April 2017 to 5 April 2018 was 11,500.

    So less than 11,500 interest earn per year for any saving account (children account where money given by parents) , no need to pay tax.

    confuse, is 1,000 or 11,500?
    • mije1983
    • By mije1983 9th Aug 18, 11:53 PM
    • 3,542 Posts
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    mije1983
    • #9
    • 9th Aug 18, 11:53 PM
    • #9
    • 9th Aug 18, 11:53 PM
    The standard Personal Allowance from 6 April 2017 to 5 April 2018 was 11,500.

    So less than 11,500 interest earn per year for any saving account (children account where money given by parents) , no need to pay tax.

    confuse, is 1,000 or 11,500?
    Originally posted by alandaniel132

    The personal allowance is different to the personal savings allowance. They are 2 different things.

    • masonic
    • By masonic 10th Aug 18, 7:44 AM
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    masonic
    The standard Personal Allowance from 6 April 2017 to 5 April 2018 was 11,500.

    So less than 11,500 interest earn per year for any saving account (children account where money given by parents) , no need to pay tax.

    confuse, is 1,000 or 11,500?
    Originally posted by alandaniel132
    If you, as the parent of a child, is unemployed and have no other income, you have both the 1,000 personal savings allowance and 11,500 personal allowance (and 5,000 nil rate band on savings) to use against any savings interest you and the child earn.

    If you, as the parent of a child, are employed, you have just the personal savings allowance of 1,000, unless you are on a low income in which case if your income from employment and savings interest combined is less than 17,500 you won't pay tax.
    • Dazed and confused
    • By Dazed and confused 10th Aug 18, 7:51 AM
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    Dazed and confused
    If you, as the parent of a child, are employed, you have just the personal savings allowance of 1,000, unless you are on a low income in which case if your income from employment and savings interest combined is less than 17,500 you won't pay tax.

    On the interest.

    You would still have to pay tax on employment income above 11,500 (11,850 current tax year).
    • xylophone
    • By xylophone 10th Aug 18, 9:19 AM
    • 26,810 Posts
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    xylophone
    A children's ISA is, if there is more than 100 interest.
    The interest arising in a JISA (or CTF) whether or not the capital has been provided by the parent (s) is not taxable either on the parent or the child.


    https://www.moneysavingexpert.com/savings/junior-isa/
    • henryandmay
    • By henryandmay 10th Aug 18, 9:39 AM
    • 50 Posts
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    henryandmay
    I asked a very similar question recently and my understanding from the responses was, if money is in a JISA then regardless of whether its come from parent or not, the interest is tax free even if its above 100 per tax year.

    https://forums.moneysavingexpert.com/showthread.php?t=5878728
    • colsten
    • By colsten 10th Aug 18, 9:50 AM
    • 9,314 Posts
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    colsten
    An ISA is not considered, any income is not taxable.
    A children's ISA is, if there is more than 100 interest.
    Originally posted by AnotherJoe
    Interest earned in all ISA accounts is tax free. So is any capital gains in S&S ISAs. The age of the ISA account holder is irrelevant for tax purposes.
    • alandaniel132
    • By alandaniel132 10th Aug 18, 11:30 AM
    • 158 Posts
    • 9 Thanks
    alandaniel132
    If you, as the parent of a child, is unemployed and have no other income, you have both the 1,000 personal savings allowance and 11,500 personal allowance (and 5,000 nil rate band on savings) to use against any savings interest you and the child earn.

    If you, as the parent of a child, are employed, you have just the personal savings allowance of 1,000, unless you are on a low income in which case if your income from employment and savings interest combined is less than 17,500 you won't pay tax.
    Originally posted by masonic
    Thanks!
    So it mean if my annual income from employee is less than 17,500. i can have personal saving allowance (earn from children's saving account) of 1,000 per year without paying any additional tax.
    • masonic
    • By masonic 10th Aug 18, 1:05 PM
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    masonic
    Thanks!
    So it mean if my annual income from employee is less than 17,500. i can have personal saving allowance (earn from children's saving account) of 1,000 per year without paying any additional tax.
    Originally posted by alandaniel132
    Yes you get the full 1,000 personal savings allowance that can be used against child savings interest. That's true even if you earn up to about 45,000. If your income is less than 17,500, then you can earn even more than 1,000 of interest tax free.
    • alandaniel132
    • By alandaniel132 10th Aug 18, 1:12 PM
    • 158 Posts
    • 9 Thanks
    alandaniel132
    Yes you get the full 1,000 personal savings allowance that can be used against child savings interest. That's true even if you earn up to about 45,000. If your income is less than 17,500, then you can earn even more than 1,000 of interest tax free.
    Originally posted by masonic
    thanks for reply.
    I wrote in bank website that if earn more than 100 per year from children saving account, need to report to tax office.

    So I am now earn less than 1,000 from my children's saving account and my income less tha 17,500 per year. So I do not need pay extra tax
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