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  • RE: Tax on interest for childrens savings accounts in my name

    Thank you for the reply, however this does not answer my questions and the link you provided has very limited information. I have earned personally, in accounts in my name, more than £500 in interest, so i will need to pay tax on this. I understand this. We then have two accounts for my daughter, one which me and my wife pay into (stated as in my name courtesy of my daughter) and this account has earned over £100 in interest this last year, so again i know there will be tax to pay on this but, do i pay tax on all of it or just what is above the £100 bracket? Also how do i capture this on my self assessment? Do I simply lump it all together as interest earned during the year? Also is the interest split as earned across me and my wife as it is stated it is for joint accounts? Or since the account is in my name courtesy of my daughter, does it just get attributed to me? The second account (also in my name courtesy of my daughter) has earned less than the £100 limit but overall she has still earned over £100 interest across the two accounts. However as the link you provided states "The £100 limit doesn’t apply to money: given by grandparents, relatives or friends". How is this controlled? All of the money in this account was provided by an grandparents, so i assume it is exempt, but the account is still ultimately in my name on behalf of my daughter. Should i simply ignore this account when completing my self assessment? If this is true and money simply provided by grandparents or relatives is exempt, is there a way to split this within the account me and my wife pay into? Some of the money within there has been provided by a great grandparent and so arguably should be exempt from interest earned. I apologise if what i am asking is not clear and would certainly appreciate any help you can provide. All the information i have found on this subject is vague and not clear and so i dont want to fall foul and pay less tax than due but i also dont want to declare earnings if they should be exempt. Thank you in advance for any help you can provide.
  • Tax on interest for childrens savings accounts in my name

    This year i have earned more than my tax free allowance on interest earned (more than £500 as a high rate tax payer), so i need to make sure i put this down on my self assessment. However i do not know what aspects i need to include. I have two savings accounts set up for my daughter, one my wife and I set up and pay in to, as well as money we get from grandparents for them, however this is usually cash and we put it in. First question - I am assuming i need to declare all of the interest earned from this account so it can be considered? The second account was set up on behalf of a grandparent who wanted to provide savings for her, however the account he wanted to set up needed to be opened by a parent. So i opened it. All the money in that account has been paid in by this grandparent, but the account is in my name. Second Question - Do i need to declare this on my self assessment as it is in my name or do i leave it as the money is entirely given by grandparents and is therefore exempt from tax on interest earned (if my understanding is correct). Any clarification would be appreciated,