Can someone else pay into my ISA?

junai139
junai139 Posts: 2 Newbie
in ISAs & tax-free savings
Hi,

Is it possible for a third party to pay into my ISA on a monthly basis?
«1

Comments

  • lisyloo
    lisyloo Posts: 29,610 Forumite
    Name Dropper First Anniversary First Post
    Yes.

    Are they gifting you the money?
    In which case there could be inheritance tax due if they die within 7 years and it's not exempt from IHT.
    So basically normal gifting rules apply.
  • dunstonh
    dunstonh Posts: 116,342 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    They cant pay directly into your ISA but they can pay you as a gift and you can then pay it in.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • junai139
    junai139 Posts: 2 Newbie
    Yes it would be a gift transferred from a personal bank account on a monthly basis . Would the bank scrutinise this and think it was money laundering?
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    First Post First Anniversary
    If the amounts are varying in large and small deposits, at different times of the month, then yes.

    But a static amount at the same time of the month, then no.
  • lisyloo
    lisyloo Posts: 29,610 Forumite
    Name Dropper First Anniversary First Post
    They cant pay directly into your ISA

    I paid into someone else's ISA using BACS with their sort code and account number.
    It was my husbands but I don't think that made any difference.
    You can pay money into any account you like with BACS, providing you have the account details.
    Not sure why you can't when I've done it???
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Name Dropper First Post Combo Breaker First Anniversary
    dunstonh wrote: »
    They cant pay directly into your ISA but they can pay you as a gift and you can then pay it in.
    If this wasn't you saying this, dunstonh, I wouldn't believe it. I've never heard this.
  • AirlieBird
    AirlieBird Posts: 1,046 Forumite
    When you sign your ISA application form you are declaring that "All subscriptions made, and to be made, belong to me"
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
  • dunstonh
    dunstonh Posts: 116,342 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    edited 19 May 2011 at 6:32PM
    JimmyTheWig wrote: »
    If this wasn't you saying this, dunstonh, I wouldn't believe it. I've never heard this.

    Looking at the HMRC ISA rules it says (under section 6.6):

    Investors can subscribe cash to either type of ISA. They must subscribe with their own cash, and this includes payment by cheque, direct debit, charge card, credit card, telegraphic transfer and standing order. Cash subscriptions from third parties can be accepted without question unless the ISA manager holds information that shows that the cash does not belong to the investor.


    The problem is that this is that its contradictory. First bit says own money including cheque, debit card etc. However, second bit says cash from third parties is allowed unless the ISA manager knows it does the cash does not belong to them.

    How this tends to get interpreted by ISA managers is that cheques, direct debits and debit cards have to be drawn on an account belonging to the same person.

    I would say that cheques from third parties should be rejected as the ISA manager can clearly see that they are drawn on a third party. However, the lack of checking on low value cheques and the lower knowledge of rules by bank clerks nowadays probably allows many to go through. Physical cash is probably the only item that can go into cash ISAs without question (subject to money laundering regs).

    The OP was looking at monthly payment which would suggest direct debit or standing order. In which case the money should come from their own account (although if using BACs, there probably isnt anyone checking).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ses6jwg
    ses6jwg Posts: 5,381 Forumite
    First Anniversary First Post Combo Breaker
    Just so you dont fall foul of the rules, I would reccomend they make a payment to your bank account, then you set up a SO for an identical amount to go out 3 days later
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    That's not contradictory. It becomes "your money" at the moment the 3rd party indicates that he is gifting it to you, or by depositing a payment into your account.

    Your salary becomes yours when your employer pays it into your account. Nobody quibbles about its source.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards