TAX problem for £30k in my name for short term?

jem16

kelloggs36 wrote:

I would think that only tax on the interest would be payable so you would benefit from it as it isn't income?? I don't know for sure though, it will depend on your financial circumstances.

Interest from savings is counted as taxable income.

windswept

I have had a similar situation with my sister, I simply opened an account (online bank) in my name and her solicitor arranged for the cheque to be made out again in my name, ( it was from an insurance/pension company). I have given her the cashcard for it and there is no way it can be traced back to her, to be honest I never even considered tax implications for me as the interest is taxed anyway, if I have to declare the interest as income, my sister will simply pay any tax that occurs. before any of you say that I am a terrible person, my sister has been to hell and back with her divorce , also with trying to get accomodation, all she wanted to do was protect the lump sum she managed to unlock from her pension to give her an actual life instead of a mere existance. she still pays full rent and council tax even though her income is less than £100 per week, while the people next door get everything paid for them because they can't be bothered to get a job. she is disabled and cannot work, she can't even get free presciptions , which, if she was an alcoholic or druggie, she would get. sorry my rant has gone completely off topic here.

going2die_rich

Just open another account with a different bank in your aunts name. Stick the cheque in and then transfer the money to you. That way as long as the first statement isn't shown to anyone, the £30k never existed. She can either leave that account open or close it, although the bank may be suspsicious if you just closed it after a £30k transfer, so it might be worth leaving open with say £10 left in it for a while before actually closing it.

RayWolfe

Do you really think you should be giving that sort of "advice"?
If there is nothing to hide, why hide it?

Toni_Tax

northernireland wrote:

Any more suggestions about TAX liability greatly appreciated.

Thanks

As the money is your aunts, it does not matter who's name the account is the interest is declarable on her not you.

However, under the Money Laudering Regulations, the Bank has to report any suspicious activity and I would say that you 'suddenly' acquiring £30K looks suspicious. Saying that, you are not doing anything wrong - like someone already said your Aunt has performed her obligations of declaring her income in any case so why not just put the money into her own account?

s55shh

ask the solicitor who sent the bequest to her to retain it in a client account for a while.