TSEM9941 - 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. »Ê¹ÚÌåÓýapp grandmother provides all the funds for the account and it is agreed that all the money in the account belongs to the child. »Ê¹ÚÌåÓýapp account is held in the name of ‘Mrs A re Bâ€�.
This is a bare trust for B. B is the beneficial owner of the funds and the interest is taxable on B. »Ê¹ÚÌåÓýapp Settlements legislation does not apply as the funds have not been provided by the child’s parent.