Implications of using a childs saving allowance

Jones80

Hi,

I will use Premium Bonds as a simple example, which have a 50k investment limit per person.

If you had 100k to invest, are there any implications in also starting an account for you child and using that 50k allowance as well as your own? (i.e. 50k per separate account).

Thanks

Zanderman

Well, the obvious implication, using premium bonds as an example, is that the child will own the bonds, not you.

NS&I's wording, for PBs for children is:

Until the child’s 16th birthday the parent or guardian nominated on the application looks after the Bonds, regardless of who buys them.

But they would be the child's bonds, not the parents. You would be gifting £50k (plus any winnings) to the child.

Not sure what you're getting at in your enquiry, but it would certainly be rather amoral, as a parent, to buy 50k of bonds in your child's name but use them as if they were yours. Possibly illegal (i.e simple stealing) too.