Reclaiming Tax on Investments

thescullster wrote:


Well it looks less clear cut in view of what is (gradually!) emerging. But - while I don't doubt your motives - there seem still to be a few possible issues.

An "allowance" paid under deduction of tax which they can then claim back from HMRC? Interesting. I assume neither is studying for accountancy or CIOT qualifications :)

OTOH you also leave them in the dark about their prospects which means they make less than optimal life choices. I do hope for your as well as their sakes that you don't face in due course "if only you had told us....." The more so as you have not indicated if the trust deed makes it impossible for capital to be advanced before they reach age 25.

Covert indeed given they are now over 18. Trust law requires a beneficiary to be able to enforce the trust. A beneficiary can hardly do that if he is unaware of the trust.
But it may well all end well - and I do hope it does.
--
Robin
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}On 26/04/2015 08:58, Robin wrote: }So my intention was and is to pay them interest and claim tax back where }applicable until the older one reaches 25 (and the younger 23) and then }surprise them with the windfall. I have asked each of them to sign a }blank R40 for this purpose.
They are being exceedingly foolish to sign a blank form and I would wonder if either you or they are breaking the law by doing this. It certainly seems to me that they, at least, are making a false declaration as they are declaring:     The information I have given on this form is correct and     complete to the best of my knowledge. and, since they don't know about the relevant investments the form does not reflect their knowledge.
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On Thu, 30 Apr 2015 21:20:48 +0100, TheChief wrote:

You would, because you're the one who knows what you're about to do with the form.
But if they get into the habit of signing blank financial paperwork...? Is that "trusting" or "foolish"?
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TheChief wrote:

So you are going to deny them access to the full amount of the interest to which they are entitled by denying them the knowledge that they are entitled to reclaim tax deducted from this "allowance"? I trust they will prove understanding of this breach. And that they won't find themselves making false statements in the meantime if they are asked to declare their income to HMRC, DWP, student finance etc
--
Robin
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