Premium bonds £120k Split between Family of 4 ?

RayWolfe

The word is GIFT. That is not your intention.

agsnu

dorsetjohn wrote: »

If its not illegal to gift each other cash , is there anyway you can get into trouble then ? I know what your saying though

If you are transferring money into their name but want to keep hold of what happens to it yourself, it's not a gift.

HMRC has introduced a "£100 rule" on savings account interest, so that if cash gifts from a parent earns >£100 in gross interest in a year, the interest is treated as if it was the parent's income - to stop people transferring large sums to their children and earning interest in their names to avoid paying income tax.

Hungerdunger

Surely the point here is that with Premium Bonds there is no interest to be taxed and any winnings they may have are tax-free.

1trainer1

if i had £120k i would do the exact same as you, my family are a close family and we all already have premium bonds adding upto to a considerable sum, we do win every now and then but so far have not won a big prize over a £1k

go for it as it is a bit of fun until you need to spend the money

dorsetjohn_3

1trainer1 wrote: »

if i had £120k i would do the exact same as you, my family are a close family and we all already have premium bonds adding upto to a considerable sum, we do win every now and then but so far have not won a big prize over a £1k

go for it as it is a bit of fun until you need to spend the money

If We win the Million , will buy you a beer !!

bryanb

dorsetjohn wrote: »

If We win the Million , will buy you a beer !!

If ONE of you win the million who's will it be?

dorsetjohn_3

bryanb wrote: »

If ONE of you win the million who's will it be?

The Wife !!

bryanb

dorsetjohn wrote: »

The Wife !!

Do you think she'll tell you if she wins?

isofa

agsnu wrote: »

If you are transferring money into their name but want to keep hold of what happens to it yourself, it's not a gift.

HMRC has introduced a "£100 rule" on savings account interest, so that if cash gifts from a parent earns >£100 in gross interest in a year, the interest is treated as if it was the parent's income - to stop people transferring large sums to their children and earning interest in their names to avoid paying income tax.

But what if the money is a really and genuinely a gift and the children are to keep the interest?

When we get around to having children, I certainly plan to give them decent amounts before they are 18 to keep as a gift, certainly not to dodge tax, but to furnish them with additional savings to give them a good start in life. I'd never dream of taking interest back, a gift is just that, a gift.

Onawingandaprayer

Sounds like a great idea....but!

A couple of years ago, when returns were a heck of a lot better than now, my wife, my elderly dad and I had £30k each for over a year.

The highest we ever won was a £50 prize. One month (the best) we had 5 of these between us. The rest of the time we averaged say £50 to £100 per month.

So we gave up!