11025
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Post by 11025 on Sept 19, 2015 9:31:07 GMT
Morning ,
My daughter is looking at setting up something like a Green Income or Great British Business account for our granddaughter to pay regular amounts into for her future . Will she have to set it up in her own name or could she be shown as the caretaker for her daughter ?
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Post by stuartassetzcapital on Sept 19, 2015 12:55:03 GMT
Morning ,
My daughter is looking at setting up something like a Green Income or Great British Business account for our granddaughter to pay regular amounts into for her future . Will she have to set it up in her own name or could she be shown as the caretaker for her daughter ? could answer your question next week. Thanks for your enquiry and yes that is one of the uses of those accounts and we have made it easy to do with the ability to set up a standing order directly to an Investment account so you don't need to log in or manually invest and the account will automatically diversify you over time.
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11025
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Post by 11025 on Sept 19, 2015 13:58:49 GMT
thanks
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Post by flx123 on Sept 20, 2015 6:24:35 GMT
In your answer could you please point out the tax implications?
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pikestaff
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Post by pikestaff on Sept 20, 2015 8:10:39 GMT
AC won't give out tax advice. The basic position is simple. Assuming that it's genuinely the child's account, then: - The child is liable for any income tax.
- They get an annual allowance just like any other taxpayer. Assuming they won't earn more than £10,600 in total there will be no tax to pay.
- But, there is a special rule for interest on money given by parents. Only the first £100 of interest is tax free. If the interest is more than £100, the whole lot is treated as income of the parent and taxed at their marginal rate.
- This rule does not apply to money given by grandparents. If you give the money (and this is genuine - no backdoor deal with your daughter) all of the interest is treated as the child's, with no limit.
- A parent looking to give a child substantial amounts should consider a Junior ISA (but p2p will not be eligible, even when p2p ISAs start).
There are plenty of guides on saving for children, eg: www.moneysavingexpert.com/savings/child-savings-tax-freewww.moneyadviceservice.org.uk/en/articles/childrens-savings-optionswww.thisismoney.co.uk/money/investing/article-1587994/Junior-Isa-Child-Trust-Fund-How-save-invest-children.htmlNone of these mention p2p. |
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11025
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Post by 11025 on Sept 20, 2015 8:18:14 GMT
AC won't give out tax advice. The basic position is simple. Assuming that it's genuinely the child's account, then: - The child is liable for any income tax.
- They get an annual allowance just like any other taxpayer. Assuming they won't earn more than £10,600 in total there will be no tax to pay.
- But, there is a special rule for interest on money given by parents. Only the first £100 of interest is tax free. If the interest is more than £100, the whole lot is treated as income of the parent and taxed at their marginal rate.
- This rule does not apply to money given by grandparents. If you give the money (and this is genuine - no backdoor deal with your daughter) all of the interest is treated as the child's, with no limit.
- A parent looking to give a child substantial amounts should consider a Junior ISA (but p2p will not be eligible, even when p2p ISAs start).
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11025
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Post by 11025 on Sept 20, 2015 8:23:32 GMT
I haven't got a clue what was going on there ! I tried to post and the web page had a hissy fit 
Anyway - what you say is as I was hoping , what I was trying to ascertain is if the account can be in the child's name ?
There won't be any tax implications at this time as she was going to start with a thousand or so and drip it in along the way .
cheers
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pikestaff
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Post by pikestaff on Sept 20, 2015 8:30:46 GMT
... what I was trying to ascertain is if the account can be in the child's name ? That I don't know. It will be down to AC.
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