following yesterdays question ref higher rate earners & their savings, can you legitematly (if you trust him/her) keep your savings in an account in his/her name that is run from your current account for example so as not to incur 40% tax. What I was planning to do was set up an icesave account in her name but feed it from my account. Is this OK or is it seen as some kind of tax evasion. TIA
I believe it is only seen as tax evasion if a parent gives a child transfers which produce interest exceeding 70 /year.
If it's your partner (DWP speak) then it's OK. The money will of course be legally theirs.
If it's someone else then you could be on dodgy ground.
It's not tax evasion in itself, but the parent must declare the interest on their
*own* tax return, ie as if it were their own income. And IIRC it's 100 not 70.Of course you could give generously to nephews and nieces and hope their parents are as generous towards your children... (such an *arrangement* would of course be tax evasion, but there's nothing wrong with giving money as birthday presents etc).
Thanks, I understand that legally it would be their's, but how would they get the money if it it's run via my current account
By changing the current account it's run from I guess.
yeah true but if she didn't have the log in details..... in writing ???? . Can't see it happenening but everyone says that.
Then she can just write to them telling them she's lost her details. And stop access to the account in the meantime as she suspects someone else has the details (ie you). What are you trying to achieve here? It's her account and her money, you can't stop her getting at it if she wants it, and technically you are committing fraud if you operate the account. If you don't trust her, then don't do it!
Sorry Just interesed, how would it be fraud? I'm just paying money into an account not set up by me. Wasn't trying to stop her getting access just interested in how it all worked, making sure i'm on the right side of the law ref possible Tax implications.
Paying in from *your* account isn't a problem. But if you log into *her* account using her login details then that is probably fraud, although provided you do it with her consent I doubt anyone will care.
Like I said you're OK tax wise. Tax experts always recommend holding assets in the lower tax paying spouse's name, and low earners are denied state means tested benefits because of their partner's income, so there's no way the govt could have a problem with partners giving each other money.
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