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can i loan my child money
Comments
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Also, from HMRC's perspective they want to ensure people do not use their children's accounts to avoid exceeding the Personal Savings Allowance and having to pay tax on the interest earned if the money had been in their own accounts.1
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All of this for £75 pa.
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kidmugsy said:I am under the impression that one can't lend money to a minor since they can't agree to repay it. Is that wrong?2
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Nebulous2 said:kidmugsy said:I am under the impression that one can't lend money to a minor since they can't agree to repay it. Is that wrong?
They are purporting to enter into a genuine loan agreement with their child because of the bank's favourable interest rate!
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baron777 said:so just a bit more information my daughter has has this account since she was 9, and then it became a current account when she was 11, if they wanted to close the account then thats fine, i probably would not want my daughter to be with a bank that treated her the way they have done, i dont bank with HSBC as my main account, but i do have a first direct account, which again i opened because it had a linked saver paying 3%, which i made interest from
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MEM62 said:
miss-using her accountmiss-use
verb. To use something in the wrong way with the aid of an unmarried girl.3 -
It may be that the bank are concerned about money being taken away from the daughter for the benefit of the parent - rather than about the interest paid.
As the bank sees it, it's the daughter's money.2 -
As the bank sees it, it's the daughter's money.
It is the daughter's money - it is in her account and the OP freely placed it there.
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Whilst I cannot condone the likely reason for undertaking the action taken, the money is held in trust with the parent the trustee (I image) and therefore the trustee has the right to withdraw the money to use appropriately for the child.
Perhaps they have already bought her a £3000 bike on their CC and now require the money to repay the debt.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone1 -
xylophone said:As the bank sees it, it's the daughter's money.
It is the daughter's money - it is in her account and the OP freely placed it there.
Not when it was being trasnferred back to the parents account.OP, for what reason did you loan your 14 year old daughter £3000?
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