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  • FIRST POST
    • DarkShadow
    • By DarkShadow 5th May 19, 9:17 PM
    • 153Posts
    • 63Thanks
    DarkShadow
    Differentiate savings given by parent & non parents
    • #1
    • 5th May 19, 9:17 PM
    Differentiate savings given by parent & non parents 5th May 19 at 9:17 PM
    Been reading https://www.gov.uk/savings-for-children
    I have a kid who has savings given by myself + grandparents/relatives. The interest they receive comes to 200. Just less than half of it is due to given by parent ~90. (Yes, we have generous relatives who give cash envelopes)

    How am I meant to tell HMRC that the interest isn't liable for any tax. 90 is due to given by parent so is less than 100 threshold. The other 110 is due to gifts so falls in their personal allowance of 12000. Should I consider keeping two accounts for the child? One for parent gifts. Other for non parent gifts?
    Bank accounts
    Santander : 17 year relationship, 0 problems to date.
Page 1
    • xylophone
    • By xylophone 5th May 19, 11:44 PM
    • 29,502 Posts
    • 17,974 Thanks
    xylophone
    • #2
    • 5th May 19, 11:44 PM
    • #2
    • 5th May 19, 11:44 PM
    Why not just use a JISA? Then it doesn't matter who has given the money - income arising within the JISA is tax free regardless of who has given it.

    https://www.gov.uk/junior-individual-savings-accounts

    Also bear in mind that the "100 rule" applies separately to each parent.

    https://webarchive.nationalarchives.gov.uk/20121003064215/http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10013916

    Above is archived material but explains the rule.
    • DarkShadow
    • By DarkShadow 16th May 19, 3:33 PM
    • 153 Posts
    • 63 Thanks
    DarkShadow
    • #3
    • 16th May 19, 3:33 PM
    • #3
    • 16th May 19, 3:33 PM
    Late reply but the 100 limit means nothing.

    They have been gifted money overseas circa 15k (Yes, I know good amount, even I dont get that gifts). They will receive a very good amount of interest, much higher than 200 as I thought previously. For me the challenge is how do I:
    A) Differentiate money
    B) Get a NI number for the kids since they dont get one so atleast I am able to report this somewhere.
    Bank accounts
    Santander : 17 year relationship, 0 problems to date.
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