ISA full. Can I put my money in my dad's ISA?

MoneySaverLog

grey_gym_sock wrote: »

it's perfectly fine to do all that, but HMRC might take the view that, under the circumstances, it wasn't a case of A making a gift to B, and subsequently B making a slightly larger gift to A, but of A making a loan to B, and B repaying it with interest. that would still be legitimate, but A should then be declaring the interest received as taxable income.

What if the interest was "gifted" though?

grey_gym_sock

which interest? the interest B receives on the cash ISA, or the interest B pays to A in respect of A's loan to B? they are 2 different things.

B can receive interest on his own cash ISA, and then give it to A. it's not taxable in A's hands just because it came from ISA interest.

the question is: is it really a gift, or really a payment of interest on A's loan to B? it is a matter of interpretation, but i think HMRC would be entitled to look at the whole circumstances.