Tax :: UK Taxes and Child Savings - Income Tax
Saving vehicles for children such as the Junior ISA or Child Trust Fund (CTF), are frequently reported as being tax free but it is not always made completely clear which types of tax these vehicles are exempt from and how those taxes would otherwise work. This two-part article looks at the three areas of tax that are relevant to childrens' savings, Capital Gains Tax (CGT), Inheritance Tax and, in the first part, Income Tax.
As many people will have experienced, Income Tax is a particularly complex area of tax. In its most basic definition it is tax applied to any money which and individual earns as income, but in practice there are a number of distinctions as to whic