Ownership and income tax: Specific types of property: bank and building society accounts: example 3 - 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. However, the interest is now over £100 a year. The Settlements legislation applies to tax all the interest on A (TSEM4310).