Junior savings

My client’s youngest child is 14 years old and she has a building society account.

Over the years she has accumulated a not inconsiderable amount of money in the account this has come from birthday presents and some legacies from relatives.

My client tells me that for some time he has been endeavouring – without success – to arrange for the building society to pay the interest to his daughter without the deduction of tax. The interest is below the level of the basic personal allowance and she has no other source of income.

I am quite familiar with elderly clients signing a form to have their interest paid gross when they are not liable to income tax but can readers tell me whether the same can be done for a child?

Also I understand that most of the capital in the account...