Utilising ISA allowance of my parent's?

tristan727

I've got some spare cash to invest, and have already done my own isa allowance. But my parent's haven't utilised their's.

Can I simply hand over my cash to them, they use their allowance, and hand it back whenever we want? All sounds quite legit & utilising our rights, freedoms & allowances...so no doubt it's more illegal than shop-lifting these days, i'd suspect?

masonic

Nothing illegal about it, but you'd have no recourse if they decided not to give it back.

Mikeyorks

........ and if they should die - it becomes part of their Estate.

Annisele

And the money would count as theirs for any means-tested benefits (and if they gave the money back to you, they'd be considered to have deprived themselves of capital).

le_loup

... and of course it is illegal. It's tax evasion not avoidance.
To put it in someone else's name for the sole purpose of evading tax is illegal except if it's to a spouse.
If, on the other hand you give it to them, that's fine.

masonic

le_loup wrote: »

... and of course it is illegal. It's tax evasion not avoidance.
To put it in someone else's name for the sole purpose of evading tax is illegal except if it's to a spouse.
If, on the other hand you give it to them, that's fine.

I don't think the OP was suggesting he would try to open an ISA in his parents name and remain in possession of the money.

le_loup

"Can I simply hand over my cash to them, they use their allowance, and hand it back whenever we want?"

Oh yes he did!

masonic

le_loup wrote: »

"Can I simply hand over my cash to them, they use their allowance, and hand it back whenever we want?"

Oh yes he did!

See the bits I've emboldend? How can you interpret them as the OP keeping the money? It is not in any way illegal to give somebody money and then ask them to give it back to you with interest at a later date.

bryanb

"Whenever we want" indicates the OP has control of the money

masonic

bryanb wrote: »

"Whenever we want" indicates the OP has control of the money

Maybe to you. To me it indicates the OP believes his parents will give the money back whenever he wants.

Let's be clear about this. If the OP has direct access to the ISA accounts then he is committing a crime, otherwise he isn't.

le_loup

masonic wrote: »

See the bits I've emboldend? How can you interpret them as the OP keeping the money? It is not in any way illegal to give somebody money and then ask them to give it back to you with interest at a later date.

Not if the aim is to evade tax. Giving it back when asked for, means ownership has not passed.
ISAs are Individual Savings Accounts.