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Where Taxpayers and Advisers Meet

Child savings interest - transfer via parents account

AK2021
Posts:6
Joined:Fri Dec 31, 2021 2:52 pm
Child savings interest - transfer via parents account

Postby AK2021 » Sun May 29, 2022 10:30 pm

My 8yo daughter received an inheritance from her grandmother. It is currently in a Barclays "child savings account", I am "trustee" of the account.
I want to transfer some to an account with Virgin money also in her name.
There appears to be no way to transfer this money directly to an external account, (Barclays CS are particularly unhelpful).
It looks like the only way to take funds out of the child savings account is to transfer it to my own current account and then on to daughters Virgin account.

My question is, if I do this, is it likely HMRC will say the funds in the Virgin ac are a gift from me, (they came from my account) and so charge daughters interest at my income tax rate?
The interest will be more than £100 pa.

pawncob
Posts:4913
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Child savings interest - transfer via parents account

Postby pawncob » Mon May 30, 2022 7:05 pm

If it's a straight contra (same amount in as out) you have evidence that it came from grandmother.
With a pinch of salt take what I say, but don't exceed your RDA


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