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Child Trust Fund v Child Savings a/c

(4 Posts)
pinkmamma Fri 19-Aug-05 08:59:46

Can't decide which would be better to set up for Ds. I have noticed you can get taxed on child savings account - is this the same for a child trust fund.
Am thinking of long term investment so is fine if cannot get the money out until he is 18

Any ideas?

MaloryTowers Fri 19-Aug-05 09:12:45

Message withdrawn at poster's request.

Twiglett Fri 19-Aug-05 09:15:28

you can get taxed on a child's saving account if you put a lot of money in .. ie enough that the interest earned on it is more than £100 a year .. because then the IR considers it your money (and you're trying to find a tax loophole)

Child Trust Fund .. you have no control on the money .. you can't get it out to pay for things as she grows up .. school? holidays? stuff she really wants so there is no real lesson she can learn about value of money.. and you have no say in how she spends it at 18 .. but fees are ok and it should really be put in shares IMHO

there's also the concept of just putting the money in your personal ISA allowance (if you haven't used it up already) then you can 'ear-mark' if for child but access it if needed during the years


pinkmamma Fri 19-Aug-05 09:36:43

MT - wow thats good on the premium bonds, I have had some for 33 years and not won a thing!!

Twiglett - I plan on giving him his pocket money so he can do as he pleases with that (and hopefully learn value of money and so on). I was wondering if say in 10 years he has 13k in a child trust fund this is going to earn over £100 a year in interest - will I get taxed on this?

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