Quick ISA question

Ilowth

Hi.

I have set up an isa for my mum in her name. Is it ok for anyone to deposit money into thew ISA? i.e. myself. Providing of course my mum doesn't open any other ISA and she stays within the yearly limit?

Thanks.

Lokolo

Technically no. Money has to go from her accounts --> ISA, either by cheque or transfer, has to be from her name. Not yours.

cheerfulcat

One way round this is to have a joint account from which you can make the deposit.

Paul_Herring

Lokolo wrote: »

Technically no. Money has to go from her accounts --> ISA, either by cheque or transfer, has to be from her name. Not yours.

Really? Citation please? Otherwise why the clause at http://www.firstdirect.com/legals/isa.shtml that says:

6.3.4 If you want to pay in a cheque or other item which has been made payable to someone else, that person must sign it on the back. We may ask for further details before we accept it. We will not accept cheques or other items made payable to a company or business. If a cheque or other item is marked on the front "non transferable" or "account payee" we can only accept it for the person it is made payable to. Cheques or other items made payable to joint names cannot be paid into your Account.

Mikeyorks

Depends on your intent. If it is to shield some of your own money in your Mum's ISA - that is not allowed.

But if you are gifting money into her ISA - there are no HMRC rules against that. But the ISA Manager for her ISA - may introduce additional requirements such that funds can only come from her. In which case you would have to gift into her Bank account and then arrange the ISA funding from that.

Ilowth

Dear All.

Thanks for the quick response, the idea behind the ISA is that my mum loaned me some money and I am therefore paying this back to her via the ISA she has set up. Therefore it is not my own money for shielding purposes. I suppose it may just be easier for me to deposit the money into her account and setup the standing order from there to the isa. I just wanted to do it quick and easy therefore did it straight from my account.

Comments are much appreciated.