Nationwide Smart Ltd Access.Who's responsible for HMRC, IHT etc?

JGal

My parents opened a Nationwide Smart Ltd Access for their granchild who's now 17 a number of years ago that both my mum and dad are named on the account in addition to my son. I have been wondering is the money classed as my sons for HMRC, IHT, LA DOA, etc purposes or can it be wholly or partly attributable to my parents?

Info on the account..

https://www.nationwide.co.uk/-/assets/nationwidecouk/documents/savings/terms-and-conditions/p2781-smart-limited-access.pdf

Thanks

gt94sss2

It classed as belonging to your son.

JGal

gt94sss2 said:

It classed as belonging to your son.

Thanks. I had asked Nationwide chat and they'd replied that until the account is in my son's sole name the funds will be counted towards my dad's name and any other main account holders for tax purposes. 

JGal

JamesRobinson48 said:

The Nationwide chat might be thinking along the lines that if a parent deposits money in their child's name (aged under 18), then if £100+ annual interest is generated, all of that interest is treated as the parent's for income tax purposes only. That's an anti-avoidance measure to prevent parents avoiding income tax by parking money in the name of a minor son or daughter.  I believe that's not applicable in this case if, as I understand it, the arrangement involves grandparents and their grandchildren only, with the grandchildren's parents not being involved at all in the funding or control of the account and unable to obtain access. 

Yes, all funds to the account from grandparents and not parents.