Taxing
Times... Your Children's Savings
 '...
nothing can be said to be certain but death and taxes.'
Benjamin Franklin 1706-90
'Tax is a subscription to a civilised society.'
Paddy Ashdown b.1941
Whatever
you think about it, you still have to pay your taxes. And that goes for
the youngest members of society too. How much tax will your children have
to pay?.
Check-out
You'll need to produce your child's birth certificate and other forms
of ID to open a child's bank account account as children are entitled
to tax breaks. The bank is legally obliged to make sure your child actually
exists.
Mr Taxman
Children have the same personal tax allowances as adults (up to £4,895 in 2005-06) and often don't qualify to pay tax. Make sure you fill in form R85 and return it to the Inland Revenue to get their interest paid in gross. If you pay money into your child's account, you may have to pay tax on the interest, if the annual income from your gifts exceeds £100 per parent.
Disclaimer While every effort has been taken
to ensure accuracy at time of publication, this information may be subject
to change. Always consult your financial advisor.
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