Hoping for a some thoughts please.
My son was left some money by a grandparent 7 years ago.
We initially invested it in a bond for 3 years.
When it matured, it good portion of it was loaned to his mother. A loan agreement was drawn up at the time, with more interest than available through bonds. I know that most would not agree with the idea of that loan arrangement, but it was done and has been repaid in full last year.
All of the inheritance (plus family loan interest) is now in a child savings account. That account attracts more than £1500 interest per year, and I’m now concerned that it has been “given by a parent” and will be taxed as such at the parents tax bracket. We have small savings as his parents, but this would eat up any allowances.
It’s a in usual situation I know, but would the money be classed as “given by a parent” as per the gov website, even though it’s really been “repaid by a parent” and originally came from grandparents.
Id wondered whether putting some of it in a JISA to avoid any issues, but the ISAs are a lower rate, and the Will said it should be available at age 21, whereas a JISA would be accessible at 18.
Many thanks in advance
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