Told I can’t use this premium bonds money for our house deposit as it’s illegal?

[kiav]

We have two premium bonds accounts. One is in my name and one is in DD’s name. We have 50k in mine and 30k in DD’s.

we are now in a position to buy a home. We will need the 50k for a deposit and we also need the 30k for things like stamp duty, new sofa, to do a small bit of work that needs doing in the downstairs etc.

I have been told by a friend it’s illegal to use Dd’s 30k for this? This is money we have saved from our income but now our circumstances have changed we need it. Surely premium bonds should tell you this before you invest??

Exactly, no drama necessary

Can we stop with the scare mongering and morality of this.

her daughter is 5 and I think mostly part of the savings is to use another gateway into a tax free account.

it is not illegal to withdraw the money out of the account to use as deposit……….

I guess this is what happens when you try and scam the system.

You should probably get some proper legal advice before you make any decisions and earmark the money for anything.

The responses are getting utterly ridiculous. OP my strong recommendation is to confirm with your solicitor/lender that this is ok ahead of the transaction. It would be awful if you spent money on the transaction to find out there was an issue with it. Always better to be open, honest and up front with tax and legal matters and get them checked out with the right people. Far better to be safe than sorry.

I have done the exact same thing and my solicitor has not found this unlawful

She’s 5 and you think her mum should miss out on buying a family home so this 5 year old can keep the money her mum earned and stored in her DDs account?! 😂😂😂 what world do you live in where folk can just gift £30k to an infant!!

Op lives in a world where she could gift an infant 30k.

If Op and partner can’t afford that house, they shouldn’t buy that house.

@SeenYourArse one where people don't scam the system, because that's what it is.

I know this is beside the point but you probably should have just put the £30k into an ISA in your name. Almost certainly would have returned more than premium bonds as well.

Have you checked with NS&I? I can't see anything stopping you taking the money out if she is under 16.

Exactly!

Omg it’s your daughter’s money!!!! I can’t imagine taking money saved for my daughter to buy a house. It’s your daughters money.

You did it to be greedy and try and get over the allowed maximum amount of bonds, don’t try and pretend you saved it for your child…

what the hell is going on……

if you have premium bonds for under 16s you have the legal right to do what you want with it

I think the difficulty is that you put the 30k in you dd’s name, but took the payouts for yourself. The premium bond rules are designed to limit each person’s access to the payouts. They should have gone to your daughter.

How has OP scammed the system? She has done something that is allowed-put some PBs in her daughter's name. Now she is going to do another thing that is allowed-cash in the PBs.

'Circumstances have changed' or you thought you'd found a way to get round the 50k tax-free cap?

When my child was born, I started a wine collection for them. It is worth a decent amount now but I wouldn’t turn around and use it for my own personal uses just because circumstances change. Set your child up for a good life and live within your own means.

Then you should be able to access it and spend it. I don’t think it would be illegal until she reaches the age of 18 would it ?

Yes you can if they are under 16 I believe

If the winnings had gone into an account in the daughter's name, the OP would still have control of what to do with the money.

https://forms.nsandi.com/gateway/online-forms/index#/form/withdraw-premium-bonds-child

As long as you are the one who set the account up, you can withdraw. I can’t see anything that says it has to be to an account in your child’s name, just transfer it to your own account.

I believe this is called Parking, and by creating this thread you've effectively admitted that you've been doing it for tax avoidance purposes and not for the benefit of your child.

You either gifted it to your daughter, or you didn't. As your daughter is getting none of the benefit of the cash you owe the tax that would have fallen due on the interest/prizes that you've been taking off to HMRC.

please don’t respond if you don’t have premium bonds for kids under 16 as you don’t know what is legally allowed.

it is 100% legal and I have spoken to and NSandI customer service manager before I opened the bonds for my kids

Hopefully your friend reports you for tax evasion.