Would Platforms like Vanguard, Iweb accept money transfers from parents bank accounts?

snowshine

Would money transfer from parents bank account to a child's (age 20) Vanguard ISA account be accepted to open an ISA account?
All live in same address .

george4064

I would think not, I’m pretty sure ISA platforms will require any new money to be paid from the individuals own account. Any person aged 20 is considered an adult.

Why can’t your parents just give you the money and then for you to add that money to YOUR ISA?

snowshine

george4064 said:

I would think not, I’m pretty sure ISA platforms will require any new money to be paid from the individuals own account. Any person aged 20 is considered an adult.

Why can’t your parents just give you the money and then for you to add that money to YOUR ISA?

I am the parent asking the question.
I could do as your suggestion. It is to get my son to open the account .....
(It was not an issue for a JISA as it did not require child's input. )

george4064

snowshine said:

george4064 said:

I would think not, I’m pretty sure ISA platforms will require any new money to be paid from the individuals own account. Any person aged 20 is considered an adult.

Why can’t your parents just give you the money and then for you to add that money to YOUR ISA?

I am the parent asking the question.
I could do as your suggestion. It is to get my son to open the account .....
(It was not an issue for a JISA as it did not require child's input. )

I have just checked and the HMRC rules state that any contributions to a S&S ISA must be from a bank account in the individuals own name. Whether or not platforms strictly adhere to that rule I’m not sure, but would be best to stick to those HMRC rules.

In which case you’re ‘stuck’ with having to make contributions from your son’s account. Whether you need your sons co-operation or not, it would be best to sit down with him, explain that you want to give him some money and that you strongly recommend that he saves that money within a Vanguard ISA for a future goal of his.

Talking about goals, what is the money actually for? A S&S LISA may be more suitable if he’s saving for a deposit for his first home.

Nebulous2

I recently opened an ISA with fidelity and was asked whether the account was in my name. It was, and all was well, so I don't know what the implication would have been if I had said no. 

snowshine

Nebulous2 said:

I recently opened an ISA with fidelity and was asked whether the account was in my name. It was, and all was well, so I don't know what the implication would have been if I had said no. 

True. When come to transfer the money the name on the account will not be the same as the bank account though.
It is to get the money transferred into a newly opened account. 20 years are always busy when asked to get things done!!!😄

jeelz

You could always try it with a £1 deposit. As the second name will be the same it might pass. I have opened a Vanguard ISA for my wife using my debit card to fund it, albeit from a joint account.

ANGLICANPAT

Would there be a potential money laundering  query  when op's son has  to answer the question  normally on the ISA application form  , as to where the money originated .  

snowshine

ANGLICANPAT said:

Would there be a potential money laundering  query  when op's son has  to answer the question  normally on the ISA application form  , as to where the money originated .  

I wonder what you mean by money laundering?
All earnings (appropriate taxes are paid) used as gift is legally accountable.
Of course nothing wrong in asking the question and so long as one could tick to say no! & Accountable for his/her actions.
I am sure gift is allowed.
Also if the donor lives for 7years following a gift no implications for inheritance tax.

ANGLICANPAT

Sorry, snowshine , daft comment, was just  thinking it would be important to make sure it was declared under   'gift'  and had gone on to think of repercussions if it had been overlooked.  

Thrugelmir

snowshine said:

ANGLICANPAT said:

Would there be a potential money laundering  query  when op's son has  to answer the question  normally on the ISA application form  , as to where the money originated .  

I wonder what you mean by money laundering?
All earnings (appropriate taxes are paid) used as gift is legally accountable.

Deposit takers aren't going to want the hassle of confirming this. Hence the requirement to come from an identifiable source.