Deposit on Children's NSI Premium Bonds

MWT

SuseOrm said:

ravkumar6699 said:

I am the responsible parent, who is saving and will be able to cash out any point of time. I don't know what makes them to think that it is not acceptable. I simply can't understand.

Well it looks like you’ve done it to avoid paying tax on the interest because the children don’t pay tax that’s what it looks like

How is that possible, there is no interest on Premium Bonds... ?

The only 'nefarious intent' I can imagine is getting around the £50k limit on premium bond ownership, it certainly isn't anything to do with tax as prizes are not subject to capital gains or income tax.

Thrugelmir

ravkumar6699 said:

Deleted_User said:

How do you propose a child writes a gift letter and signs legal paperwork confirming they are happy to gift their money to you?

To see who's money it is, ask the bank to close the account and see who they make the cheque out to. Will most likely be the child as you are merely a manager of their money at this point 

You either gave the money to the kids in which case it's no longer yours, ot you put it there to not pay tax on the interest which is tax evasion.

If you can get the money back in to your account then wait 3-6 months to apply is your best bet.

Thanks for your reply. It is not bank account. They are in Premium bonds. When i cash out, they will be straight into my bank account, from which i paid to buy premium bonds. Regarding Tax - There is no tax on Premium Bonds winnings. Even though technically bonds are child name, but I am the responsible person. 

Why did you buy premium bonds in your childrens names and not your own? 

[Deleted User]

The question asked is different but it results in this quote directly from NS&I:

When Bonds are purchased for a child they do legally belong to the child. The responsible parent is only authorised to manage them on behalf of the child while he is under 16.

https://www.google.com/amp/s/www.thisismoney.co.uk/money/experts/article-2193046/amp/Can-I-22k-Premium-Bonds-I-bought-estranged-son.html


From a property purchase point of view.  If you cash these in and use them then you are using the children's money.  A solicitor will not sign that off as your own funds and will always notify the lender.

Again I suspect the only option is to cash them in and wait long enough for a solicitor not to ask for more proof on where the money came from (but even that is disingenuous as you would have to hide the true source of funds)

Probably best to have a broker do some calling around or ask the solicitor for advice.  Responsible adult or not, its legally not your money anymore

getmore4less

Naughty step.

You are not allowed to put your money into premium bonds using a child's name.

One premium bond account per person and no joint accounts.