MegaSack DRAW - This year's winner is user - rgwb
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There's something about parents investing savings as a gift - if it produces more than £100 PA income then its taxable.
Is this only an issue if I was using my child's tax free savings interest as a source of income? Seems that the 'gift' wording is key.
We're planning to put £100 per month away as a nest egg for our daughter but things aren't too clear. I guess these rules apply to people investing substantial amounts trying to avoid tax, but do our savings count as gifts?
FWIW thinking of a Northern Rock 'Little Rock' account as its up to £8.5k tax free, then after that we'd go for junior ISA'as. Anything else I should consider?
Hi, just opened an account for my son, had a but of a look around and Halifax will do a 6% junior Isa which is roughly double the nearest ones. You have to hold an Isa there too, but it's only got to be opened the same fast and have at least a quid in it.