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Replies to Queries - 1 - Whose money?

10 July 2002
Issue: 3865 / Categories:

My friend, as godparent to a number of children, places money monthly into interest-bearing accounts with the bank, and ultimately releases monies to the appropriate godchild on his or her eighteenth or twenty-first birthday.

The bank literature confirms that where an account is opened 're - a minor', the interest can be credited gross.

My friend, as godparent to a number of children, places money monthly into interest-bearing accounts with the bank, and ultimately releases monies to the appropriate godchild on his or her eighteenth or twenty-first birthday.

The bank literature confirms that where an account is opened 're - a minor', the interest can be credited gross.

The account is indeed in the child's name, but my friend is the signatory and in the final analysis could presumably use this money for his own purposes, should he choose to do so, which he would not. As, legally, he appears to be the owner of these accounts, what is his position concerning disclosure for self-assessment return purposes? If he does have to pay tax on these 're' accounts, what is the purpose of the interest being credited gross in the first place?

(Query T16,036) - Fives Player.

Issue: 3865 / Categories:
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