Can I put 25k in my Dads Tax free account

ultra10

Just a thought, but I have 25k maturing in a weeks time from a 1 yr Bond, can i simply gift it to him in order to take advantage of the tax free savings he qualifies for ?? ...

opinions4u

What tax free savings does he qualify for?

ultra10

He is over 75 so i think doesnt pay tax I think

opinions4u

Don't do it.

1) Age doesn't make him a non-taxpayer - his income does. State pension plus small private pension plus interest on savings = tax liability for many.

2) If he dies and has other assets, you could end up paying inheritance tax on your own money!

3) If he doesn't have a will and there are other claimants on the estate, you could lose some of your money to other family member.

4) If he ends up in a care home, it will be treated as his money and some of it used to pay for his care.

There are numerous other reasons not to do this !!

ultra10

Thanks for that . It was just a thought but will probably go for another Icesave bond now .. :beer:

Voyager2002

ultra10 wrote: »

He is over 75 so i think doesnt pay tax I think

People over 75 may have a higher personal allowance than the rest of us, but that is very far from being a blanket immunity from tax. Only the Queen enjoys this, and that is not a function of her age!

It may be that he would pay less tax on the income from your money than you would, so under some circumstances it might make sense to give the money to him instead of anything else you might have been planning to give him. But once you have made the gift, it is his.

Broke_Student

Is it illegeal to put money in somebody elses account to avoid paying tax on savings?

opinions4u

Voyager2002 wrote: »

People over 75 may have a higher personal allowance than the rest of us, but that is very far from being a blanket immunity from tax. Only the Queen enjoys this, and that is not a function of her age!

It may be that he would pay less tax on the income from your money than you would, so under some circumstances it might make sense to give the money to him instead of anything else you might have been planning to give him. But once you have made the gift, it is his.

I think you'll find that since April 1993 Her Majesty has paid income tax.

I don't think she is liable to CGT or IHT though.

Plasticman

Broke_Student wrote: »

Is it illegeal to put money in somebody elses account to avoid paying tax on savings?

Not if you're married to them.

CLAPTON

Broke_Student wrote: »

Is it illegeal to put money in somebody elses account to avoid paying tax on savings?

it isn't illegal to give money to some else.

dunstonh

It would be classed as a gift to the father. So, the father can spend it and if he was to pass away it would be distributed in accordance with the Will (if there is one).

As your father is a non tax payer there is a good chance he is getting pension credits as well. Gifting him this money could see him lose some or all of the pension credit and that could do him a lot of harm financially.