ISA allowance query

pb361

I have had a monthly standing order into my Mum's savings account for years. She now wants me to amend this so it goes into a Cash ISA she has just opened. I already have my own ISA and am up to my limit for this year's allowance. Does it matter that I'm putting money via a standing order into someone else's Cash ISA as well?

innovate

The ISA is in your mum's name, so she has her own allowance, nothing to do with yours.

Presumably you are already well on top of the relevant gift/IHT legislation, and you know that the money isn't yours after it has been deposited into someone else's account.

McKneff

Its tantamount to fraud, did you know that.

And also, once any money goes into someone elses account it legally belongs to them.

Why is it going into a savings account in your mums name, why not a savings account in your name, unless of course she is not a taxpayer and you are using that to avoid tax. Again, fraud.
Be very careful.....

pb361

Thanks for the interesting responses.
To McKneff: to clarify, I'm giving this money away. I've already paid income tax. Its a gift and as far as I'm concerned is her money; I'm not gaining any interest on it - she is.
Not sure how that can be considered fraud - but happy to be further enlightened.

To innovate: those were precisely my assumptions, but if you have any refs on gifts and IHT I could follow up I'd be grateful.

YorkshireBoy

pb361 wrote: »

...if you have any refs on gifts and IHT I could follow up I'd be grateful.

Why not just google "gifting money and inheritance tax"? Loads of "refs" there.

FOREVER21

McKneff wrote: »

Its tantamount to fraud, did you know that.

And also, once any money goes into someone elses account it legally belongs to them.

Why is it going into a savings account in your mums name, why not a savings account in your name, unless of course she is not a taxpayer and you are using that to avoid tax. Again, fraud.
Be very careful.....

I think you will find,
Avoidance =Legal
Evasion= Illegal

If you need clarification between the 2 ask Starbucks!!

AlwaysLearnin

Found this, which appears relevant (to the subject; you'd have to check if still factually correct):

https://forums.moneysavingexpert.com/discussion/3241596

To air on side of caution, you might want to continue sending to the same account you're sending to now, or her current account, then she sets up the transfer to her ISA. After all, an ISA is an "Individual" Savings Account

pb361

Always Learning: Great link. Thanks. Fascinating thread.

innovate

McKneff wrote: »

Its tantamount to fraud, did you know that.

where's the fraud in this?

DragonQ

The whole "gift allowance" thing is a joke anyway. If it's money, you've already paid the required income tax (and other taxes) on it. If it's an item, you've already paid VAT (if applicable).

I can't imagine any problems if you set up a standing order to your mother's bank account. I'd let her set up another standing order to her ISA though, rather you you doing it directly.

robatwork

There seems to have been some assumption here that you are paying the money to her to squirrel it away from the taxman, and at some point you will be getting the money back from her,

You state that it's a gift from you to her so that doesn't enter into it, and that she will spend and enjoy it?

Complications could arise in the event of her death however.

And alwayslearnin, as you're alwayslearnin....have this for free. It's err not air