From: "+Jackson+" 
Newsgroups: uk.finance
Subject: Re: Unusual money problem
Date: Tue, 5 Jul 2005 09:19:40 +0100


"Ronald Raygun"  wrote in message
news:gZgye.62701$G8.25397@text.news.blueyonder.co.uk...
| +Jackson+ wrote:
|
| >
| > A close relative has asked me to look after quite a large sum of money
for
| > them from a property sale, in an interest earning ac, as they don't
trust
| > themselves with it. I have existing savings a/c's with ING and a couple
of
| > others, but I see a problem because I'm self employed and on higher rate
| > tax. Can anyone suggest a solution?
|
| What specific problem do you see?  The interest will belong to your
| relative, not to you, so you would not need to declare that part of the
| interest on your tax return.  If keeping the money in an account in
| your name, it will make it easier to keep track of what part of the
| interest is whose if you just opened an additional account in your name.
|
| > Can the relative open an ac in their
| > own name, but with me as the only signatory? Or something else.....?
|
| You could open an online-only account in the relative's name.  The
relative
| would need to sign all the forms etc, but get you to set up the passwords,
| to be kept secret from him/her.
|
| This is probably technically against the T&Cs, and the relative would have
| no leg to stand on should you run off with the dosh, but apart from that
| it should be OK.  You'd need to think about what would happen if you got
| run over by a bus.
|


I was worried about triggering an IR enquiry into my business. I'll have to
include the savings on my tax return, which will not tally with my earnings
figures.

Cheers
+Jackson+