Buying in another persons name

natsplatnat

Good afternoon All!

I usually spend my time over on the DFW board, but today I have a question that I hope you guys here can help with.

My (lovely) OH would like to transfer into my bank account a sum of money for me to buy Premium Bonds with (this is not about the pros and cons of Premium Bonds!). We would draw up our own agreement regarding the Bonds and any winnings that may come our way, that is not a problem. I would like to know where we stand with a sizeable transfer of money (£25,000 to £30,000) into my name? Does it get classed as 'a gift' or would there be any tax implications?

Any help on this matter would be gratefully received as I really do not know!

Lokolo

There will be no tax implications.

le_loup

Assuming you are married, there is no tax implication.
If he does transfer money to you, it does become your money.

natsplatnat

Thanks for yor replies!! :O)

Not married! Does this make any difference?

Linton

The only difference about not being married is that if he dies in the next 7 years the gift would be part of his estate for inheritance tax purposes. Otherwise I cant think of any tax implications. Of course were you to split up he couldnt ask for it back (well he could but you could say no).

natsplatnat

Does everyone on this board have a name beginnig with 'L' ?? lol

Many thanks Linton. I will be drawing up a 'contract' for us to both sign regarding the money. I am not planning on leaving him anyway - he knows (or is that hopes?) I wouldn't run off with his money but it would just confirm everything in black and white!

natsplatnat

Erm - is there not a limit on the amount of the 'gift' you can give any year without it being taxable?

Many thanks in advance, nats x

jem16

natsplatnat wrote: »

Erm - is there not a limit on the amount of the 'gift' you can give any year without it being taxable?

No there isn't.

As Linton has already said, the amount might be subject to inheritance tax if the person dies within 7 years but apart from that no tax is due.

natsplatnat

Thanks - was just heading back to say I had found the info myself - but you are just too efficient!!! Many thanks, nats x

atush

The only problem I can forsee is legal problems if he is giving you this money to say, shield it from creditors etc. But if that isn't the case, and he lives 7 years after you should be fine. Unless you squabble over who gets the winning prize ;-)

calypso_rhapsody

Is this just a way of getting round the individual limit on Premium Bonds? i think it may be given that you say you'll have a contract and you would not run off with 'his money'. I am not familiar with PBs, having cashed mine in some time back, but i wonder whether you would be in breach of the conditions? Don't suppose it matters if you only win the odd £25 or so, but if you win £1million then NSandI might look more closely?