Buying a house in sons name.

AnotherJoe

When you put £20k into his ISA (not "in his name" since there's no such thing as an ISA belonging to X with Ys name on it) was your intention that he would give you that back at some point ?
If so then it clearly is tax evasion. Whether it's provable is a different point.

BrassicWoman

Pikeman1 wrote: »

Some of the funds are already in my sons name. Any profits or tax to pay will also be in my sons name. So money's will go to him. If I do ahead will get some advice on a trust fund. If I put 20000 into an isa in his name would you class that as tax evasion? Genuine question if so a lot of tax evasion goes on.

Why are you talking about "putting things in his name" instead of "giving him"?


If you would not gift things to him, then don't do it. Legally, putting things in his name is giving him a agft.


Woud you be ok if he spent all the money/ sold the house and bought yoyos with the cash?


If not - then don't do it.

Pikeman1

I suppose it's a fine line got isas in my wife's name also as do many people. Will certainly be getting in advice if I do decide to go ahead. But does seem.a bit of a minefield. Looking at pensions also.

AdrianC

I see we've still got the perennial confusion between tax avoidance and tax evasion...

Tax avoidance is legal. Put money in an ISA, you avoid tax. Don't drink a bottle of whisky and smoke 40 cigs a night, you avoid tax.

Tax evasion is not legal. Put money in an ISA in somebody else's name to double your effective allowance, you evade tax. Drink a bottle of black-market whisky and smoke black-market cigs, you evade tax.

If your wife has her money in an ISA in her name, that's legal.
If you have your money in an ISA in your wife's name to double your allowance, that's not.

One quick question, OP... Does your son's condition allow him to operate the residential letting business you're suggesting setting him up with?


It strikes me that you'd be best investing the money into a trust in your son's name. Professional advice needed.

JReacher1

AdrianC wrote: »

If your wife has her money in an ISA in her name, that's legal.
If you have your money in an ISA in your wife's name to double your allowance, that's not.
.

Are you sure it’s illegal?

Can you not just argue that it’s shared money? I don’t really agree with my money and my wife’s money. It’s our money.

AdrianC

If it's a joint marital asset, then - yes - it's legal. It's your money and it's her money.


That doesn't work with an adult son, though...

JReacher1

AdrianC wrote: »

If it's a joint marital asset, then - yes - it's legal. It's your money and it's her money.


That doesn't work with an adult son, though...

No I agree it doesn’t.

I just got confused as you said it was illegal to put money in your wife’s isa. That didn’t seem correct.

Thank you for clarifying.

AnotherJoe

Pikeman1 wrote: »

I did expect those replies as soon as I wrote it lol.Tax avoidence is legal as far as I'm aware. But may be I should have a rethink. Thanks for the comments may be not such a good idea. May be marcus at 1.5 percent would be much easier lol

The person to who you are responding did say "half baked attempt ".
So, do it wrong (half baked) and it either becomes evasion or simply has no effect and tax is still liable.

AdrianC

JReacher1 wrote: »

No I agree it doesn’t.

I just got confused as you said it was illegal to put money in your wife’s isa. That didn’t seem correct.

Thank you for clarifying.

Your wife can put her money into her ISA. If that's joint money, then it's her money.

Pikeman1

No Adrianc I would like to think that he would but probally unlikely. Maybe some sort of trust would be a better option.