From: "Doug Ramage" 
Newsgroups: uk.finance
Subject: Re: Paying tuition fees without paying tax
Date: Fri, 13 Feb 2004 09:23:13 -0000


"Chris Plumber"  wrote in message
news:P0RWb.10802$q%6.3728750@newsfep2-win.server.ntli.net...
> "Doug Ramage"  wrote in message
> news:c0g7ad$176ko5$1@ID-34015.news.uni-berlin.de...
> >
> > "Ronald Raygun"  wrote in message
> > news:LhJWb.2620$pz5.25988137@news-text.cableinet.net...
> > > Alec wrote:
> > >
> > > >> The question is - does the UK tax system allow me claim that the
> money
> > is
> > > >> not mine if I arrange for the cheques to be paid directly to my
son?
> Or
> > > >> is there some better way of obtaining the same result by other
means.
> > > >
> > 
> > >
> > > Surely they could gift the beneficial interest in the business to
> > > their son.  Then all income from it would be his, and taxed as his.
> > >
> >
> > Could be CGT implications.
> >
> > And if he is  under 18, it could ineffective for income tax purposes.
> >
> > Wife as a partner in the business?
>
> I dont run it as a "business" in any formal sense. Would there be
advantages
> in doing so?
>
> Also: My son isnt 18 yet but will be by the time he goes to university.
>
>

If it is making money on a regular basis, you may need to formalise this
activity, including registering self-employment with the IR, if
appropriate - £100 penalty for failure to do is.
--
Doug Ramage