What should i be looking for in a child's ssavings account? Are they tax-free or I do have to declare interest and pay tax on it?
Hi Flamenca
If you're looking to save in a normal high street children's savings account, fill out an Inland Revenue R85 and your children's savings will be taxed free.
If you're looking to invest (rather than save) then a Tax Exempt Savings Plan may be more suitable. All the returns are free from income tax and capital gains tax. However, the maximum you can invest here is ??25 for each family member per month
Replies
Hi Flamenca
If you're looking to save in a normal high street children's savings account, fill out an Inland Revenue R85 and your children's savings will be taxed free.
If you're looking to invest (rather than save) then a Tax Exempt Savings Plan may be more suitable. All the returns are free from income tax and capital gains tax. However, the maximum you can invest here is ??25 for each family member per month
Simply print out the forms and give it to your banks when you're opening the account and your children savings won't be taxed.