Premium bonds

Cherylekatz

I have a decent amount in savings that of course aren’t earning any money at the moment, the money is in my sole name. 

I have the maximum amount in premium bonds but would like to buy more but in my husbands name. Am I able to do this without either of us being subject to tax?

csgohan4

premium bonds are not taxable. Giving your husband money for premium bonds, will technically be his money, for example if your buying a house and need to show you deposit, in the solicitors eyes it will be a gift from your husband as crude example. 

Have you considered a stock and shares ISA? LISA if under 40 years, increasing pension contributions, they are far more tax efficient. 

IntoTheForest

What are your goals with this money? PBs are a good bet for an emergency fund or money you will need in the next 5 years but you should be aware that due to inflation they will probably depreciate in real value. 

polymaff

IntoTheForest said:

What are your goals with this money? PBs are a good bet for an emergency fund or money you will need in the next 5 years but you should be aware that due to inflation they will probably depreciate in real value. 

As will just about every £50,000 savings account.

0.9% is looking pretty good for easy access at the moment - and if you would pay tax on other savings products' interest, even better.

Jox

Stocks and shares ISA, invest in Scottish Mortgage Investment Trust, it's doing well at the moment

eskbanker

Jox said:

Stocks and shares ISA, invest in Scottish Mortgage Investment Trust, it's doing well at the moment

How have you managed to correlate that very specific suggestion with OP's requirements, which, as far as I can see, remain unstated?

doe808

Jox said:

Stocks and shares ISA, invest in Scottish Mortgage Investment Trust, it's doing well at the moment

what a random statement. And I say that as a long time holder of SMT

Cherylekatz

csgohan4 said:

premium bonds are not taxable. Giving your husband money for premium bonds, will technically be his money, for example if your buying a house and need to show you deposit, in the solicitors eyes it will be a gift from your husband as crude example. 

Have you considered a stock and shares ISA? LISA if under 40 years, increasing pension contributions, they are far more tax efficient. 

I have ISA’s etc but would like to put an additional 50k in Premium Bonds to get maximum chance of winning something all the while interest rates are offering next to nothing. I’ve done better this year already than I would have done in many notice accounts. 

Just curious on how a ‘gift’ would affect my husbands tax situation. 

Cherylekatz

polymaff said:

IntoTheForest said:

What are your goals with this money? PBs are a good bet for an emergency fund or money you will need in the next 5 years but you should be aware that due to inflation they will probably depreciate in real value. 

As will just about every £50,000 savings account.

0.9% is looking pretty good for easy access at the moment - and if you would pay tax on other savings products' interest, even better.

Just to earn a few £’s from it. I have available cash that is earning all but zero so would like to be able to double up on PB’s. 

I have various investments, just curious how a ‘gift’ would affect my husband’s tax situation in this instance. 

eskbanker

Cherylekatz said:

Just curious on how a ‘gift’ would affect my husbands tax situation. 

From a legal/tax perspective it would be an actual gift, not a 'gift', but there shouldn't be any tax ramifications, assuming you survive another seven years, although the money being in his name could impact on (for example) any means-tested benefit claims and would be part of his estate if he passed away.

MX5huggy

What are you going to do if his half wins £10m? Expect him to gift it back? 

I think you are overthinking it maybe you keep your finances completely separate, my PB purchases come from our joint account which we both pay our full salary into. They are “our” PB’s that happen to be in my name because they can’t be held jointly and having 2 accounts would be complicated, if I wanted to hold more than £50k I would open an account for Mrs MX5.