Reclaiming tax

[Genesis]

A friend has held a savings account on behalf of her son. The son turned 16 a few months ago but the building society has only recently written to say that he now needs to have his own account, or he will pay tax on his savings as the account is in his mother's name and she is liable for tax. They have since sorted out an account for him but now find that he has paid about �5 in tax since his birthday. Is it possible to reclaim this? The man in the building society apparently didn't offer any advice and more or less shrugged it off as a lost cause. It might be only �5 but it doesn't seem right that the son should lose it.

Thank you.

[Ethel]

Has he any other income? If he is earning above �5225 from any source he will have to pay tax on savings.

If he has no other income apart from the �5 interest he should contact his local tax office to get the money back.

[kempie]

http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/ManagingMoney/PlanningYourPersonalFinances/D G_10014128

[Genesis]

Ethel - Thank you. He's actually still in full time education and isn't earning a penny. Should have mentioned that!

kempie - Thank you for that link. I'll pass on the details.

Thank you both very much.