Reg isa

Confused_75

Hi

My eldest child is 18 and she is in full time education .I m thinking of investing on isa for her so that she can use for either education or her first house.

Does she have any tax implications if she gets regular money in to her ISA through her account.Is there  any limitations on the amount I can transfer other than ISA limit of 20000.

Middle_of_the_Road

Not sure what you mean by a regular ISA, if you mean a cash ISI, you need to be clear what this money is for. If it's solely for her first property a LISA would be a good idea. 

https://www.moneysavingexpert.com/savings/lifetime-isas/

https://www.moneyboxapp.com/isa/lifetime/cash/

A cash ISA would be useful if you intend some of the cash to help with her education, as withdrawals are permitted.

The ISA needs to be opened in her name even if you intend to fund it. As you say, the annual limit is 20k across each type of ISA, so that could be 4k to the LISA and the remaining 16k into an ISA.

Confused_75

Hi 
thank you for the reply .The isa is in her name and it would be a combination of cash and stocks isa .
just wondering about any tax implications for her if I fund it as she over 18 and I m unable to do direct debit through my account ti her isa as we have different surnames.I have to send her money to her account so that she can set up a direct debit from hers for isa 

Middle_of_the_Road

As far as I understand, there are no taxes levied on a gift

https://community.hmrc.gov.uk/customerforums/cgt/b7f75b45-e11f-ed11-b5cf-00155d973ade

refluxer

Confused_75 said:

Hi 
thank you for the reply .The isa is in her name and it would be a combination of cash and stocks isa .
just wondering about any tax implications for her if I fund it as she over 18 and I m unable to do direct debit through my account ti her isa as we have different surnames.I have to send her money to her account so that she can set up a direct debit from hers for isa 

ISA rules dictate that money paid into a cash ISA must be your own, so you're going about it the right way.

There might be inheritance tax implications for any money you give to your daughter above the £3k annual gift allowance (called the 'annual exemption') if you were to die within 7 years of making the payment.

https://www.gov.uk/inheritance-tax/gifts

Albermarle

refluxer said:

Confused_75 said:

Hi 
thank you for the reply .The isa is in her name and it would be a combination of cash and stocks isa .
just wondering about any tax implications for her if I fund it as she over 18 and I m unable to do direct debit through my account ti her isa as we have different surnames.I have to send her money to her account so that she can set up a direct debit from hers for isa 

ISA rules dictate that money paid into a cash ISA must be your own, so you're going about it the right way.

There might be inheritance tax implications for any money you give to your daughter above the £3k annual gift allowance (called the 'annual exemption') if you were to die within 7 years of making the payment.

https://www.gov.uk/inheritance-tax/gifts

To be clear ( as it often is not) this would only be relevant if the OP's estate  was likely to be liable for IHT in the first place.

Anyway giving more than £3K would not itself incur any extra tax over and above what might be due anyway ( after she is dead) , so is most likely not an issue in this case.