IVF and a SAVE

the_other_half

Hi guys, a family member has a company share save account SAYE with his work. The share save is set up with the Halifax. He asked me originally if I wanted to invest which I do currently paying £200 per month into his account and as you know the money is taken out of his payroll and transferred into the share account.

The problem is he needs to do an IVF he has given me warning and asked if I want him to close the account and get the cash back (it's been running 13mts), and is due to finish in Jan 2012 the problem is I don't want to cancel the option as the shares are currently worth well over double.

Is it possible for him to go into a IVF and keep the share save going? Or is it possible to have the certificate transferred over to me?

althas

1st thing, I am presuming you mean an IVA not IVF (which is something to do with testubes and making babies ;-) )

I would make a guess that the fact the account is in his name with his works and share save things usually have something to do with tax also, then you would not be able to do anything. But I could be well off the mark I am sure someone more knowledgeable will give a better answer

Get him to ask his works about the ins and outs of the account, he will have had some paperwork when it was set up

Charco_2

No, unfortunately, I don't think you're wrong Althas.

However there MIGHT still be a glimmer of hope. If you can show some sort of official paperwork (£200 leaving your bank account and £200 entering his bank account consistently) then you might be able to prove that it's not his and of no concern to his creditors so the IP wouldn't need to pursue it... however that's not to say it won't have other implications like Tax (a concern that Althas has already raised)

I wouldn't be the best on this, but i know a guy who knows a little more than me... i'll see what i can find out for tomorrow.

the_other_half

Thanks for your help so far guys any further help Charco would be much appricated.

I have just spoken to the Halifax who told me I can set up a standing order directly into the Share save account but can't change the name on the account grrrrr

Choo_Choo_4

Just out of curiosity .. does the family member also invest in this Share Save Scheme or is it just you?

I was thinking along the same lines as Charco in that you might have been able to prove that it is linked to you given the money going from your account to his each month - especially if this paper trail's start date coincides with the start date of the investment - but it could be tricky. The more information you have linking you to it, the better ...

Charco_2

Mentioned this in passing to our IP there now... he was of the opinon (as I previously suggested) that provided it's "cash neutral" on your friend's income and you can show that this has been the arrangement then it shouldn't be a problem for the IVA/the creditors/the IP. (So provided it isn't affecting your friend's income: money in = money out)

There WILL LIKELY be a CGT issue raised at a later date (Capital Gains Tax) - so run it passed the IP now and he can try to start to unravel it and to make allowances for it.

the_other_half

Choo_Choo wrote: »

Just out of curiosity .. does the family member also invest in this Share Save Scheme or is it just you?

I was thinking along the same lines as Charco in that you might have been able to prove that it is linked to you given the money going from your account to his each month - especially if this paper trail's start date coincides with the start date of the investment - but it could be tricky. The more information you have linking you to it, the better ...

No it's just me who is paying in, he can't afford it hence the IVA

the_other_half

Charco wrote: »

Mentioned this in passing to our IP there now... he was of the opinon (as I previously suggested) that provided it's "cash neutral" on your friend's income and you can show that this has been the arrangement then it shouldn't be a problem for the IVA/the creditors/the IP. (So provided it isn't affecting your friend's income: money in = money out)

There WILL LIKELY be a CGT issue raised at a later date (Capital Gains Tax) - so run it passed the IP now and he can try to start to unravel it and to make allowances for it.

Thanks for your help it is appricated. BTW what is IP?
OK well thats good news, on the CGT I was of the opinion that it only effected any profit over £8.5k is that still the case? If I carry on I will have £7.2k paid in and around 12k profit ("IF" the share price stays about the same).

H

Charco_2

IP = Insolvency Practitioner. This is the guy who will propose the IVA for your friend and supervise it for five years.
IVA = Individual Voluntary Arrangement. This is the contract/agreement the IP will draw up on behalf of your friend.

Charco_2

No apparently no CGT implications, just make sure the money is paid as quickly as possibe to you when the whole thing matures! (that sounds ominous but there's nothing to worry about)

However there is a small anomaly here if i now understand it correctly! ha ha

Your friend is paying £200 out of his wages or whatever to the company, you're replacing the £200... seems all fair and square!? Not exactly - but I wouldn't go rocking the boat!

Your friend is not receiving the first £200 so he's not being taxed on it in the same way that the rest of his wages are taxed... you're replacing the £200 so no tax there either. Your friend is actually a little bit better off (and therefore the creditors would be happier). If he received the £200 a month as wages, it wouldn't add up to £2,400 a year because that would have to be taxed, because YOU'RE paying him the £200 a month it DOES add up to £2,400 a year.

Just a small anomaly!

the_other_half

Thanks for all the advice guys, I have asked to speak with the IP when my friend finally makes the decision.