Beat the tax raid on your children

Hundreds of thousands of children are paying tax on their savings, claims the Daily Telegraph, because of outdated HMRC rules.

These force banks and building societies to deduct tax at 20% from interest unless the parent of the child has filled in form R85, and many don’t. The paper suggests that parents use tax-exempt Junior ISAs as savings vehicles because no tax will be deducted and there’s no need for any form.