This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Trusts, Settlements and Estates Manual

Ownership and income tax: Specific types of property: bank and building society accounts: example 1 - account for minor

A tells the bank she wishes to open a savings account for her grandchild B. The grandmother provides all the funds for the account and it is agreed that all the money in the account belongs to the child. The account is held in the name of ‘Mrs A re B’.

This is a bare trust for B. B is the beneficial owner of the funds and the interest is taxable on B. The Settlements legislation does not apply as the funds have not been provided by the child’s parent.