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loan to parents.
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I am fortunate enough to have some spare cash that i would like to loan to my parents so they can put it into a savings account in order to get them some interest for pocket money (santander 123 is favourite) the loan from me to them would be interest free but re-payable on demand.
question is if anything should happen to them (god forbid) how would i prove to the tax man that the money is mine and not a gift from them under the 7 year inheritance regulations they do not charge CGT on my own money.
question is if anything should happen to them (god forbid) how would i prove to the tax man that the money is mine and not a gift from them under the 7 year inheritance regulations they do not charge CGT on my own money.
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Is there anything to prevent you opening the Santander account in your name and then giving the interest to your parents?0
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You would need to get them to sign a loan arrangement. Tricky situation, best to speak to a solicitor.I am fortunate enough to have some spare cash that i would like to loan to my parents so they can put it into a savings account in order to get them some interest for pocket money (santander 123 is favourite) the loan from me to them would be interest free but re-payable on demand.
question is if anything should happen to them (god forbid) how would i prove to the tax man that the money is mine and not a gift from them under the 7 year inheritance regulations they do not charge CGT on my own money.
As has been said though, the far easier option is for you to open the account and give them the interest."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
thanks for your responses.
problem is i already have a n account myself with santander.0 -
To be honest, it looks like you are making life difficult for yourself, if you want to give your parents some spending money I would simply set up a recurring transfer from one of my (well your!) accounts to theirs. Why 'loan' them the capitol in the first place? Or is this a tax dodge for you?YNWA
Target: Mortgage free by 58.0 -
As if i would try not to pay my fair share of tax !!0
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Simple,
Open up a joint account with you and one of your parents name on it, deposit up to the twenty grand limit for the interest and set up the required two direct debits.
No tax to be paid and and money will still be yours if the worst should happen.0
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