Ownership and income tax: Specific types of property: bank and building society accounts: example 2 - account for minor
A opens a savings account for her minor child B. A provides all the funds and it is agreed that all the money in the account belongs to the child. The account is held in the name of ‘Ms A re B’.
This is a bare trust for B. B is the beneficial owner of the funds and the interest of £85 a year is taxable on B. Where the total of the relevant settlement income of a child from settlements of one parent does not exceed £100 in any tax year, the Settlements legislation does not apply in that year (TSEM4310).