From: "Andy Pandy" 
Newsgroups: uk.finance
Subject: Re: Unearned income (gift)
Date: Wed, 23 Nov 2005 10:40:14 -0000


"Ronald Raygun"  wrote in message
news:OOCgf.13388$Lw5.12553@text.news.blueyonder.co.uk...
> It's not just £2k of capital, but £2k of capital which came from parents.
> So if the account is likely *ever* to exceed £2k before the child ceases
> being a child (at 18, presumably), it is worth keeping a note of where
> it has all come from.

We just never put any money into our children's accounts. Just be generous to
nephews and nieces and hope their parents are generous towards your kids :-)

> It's not enough merely to note how much has come from parents, but
> it helps to note where *everything* has come from, so that questions
> can be answered without too much hesitation.
>
> What's the status of pocket money, by the way?  If it is "earned"
> for "chores", does it count as a parental gift, or as the child's
> unfettered own money?  Are there "going rate" tables which say that
> so much is fine for earning, and the rest must be treated as a gift?
> Then what happens if the gifts all get spent on sweeties and only
> the earnings go into the savings account?

If it's "earnings" then you'd have to comply with employment legislation, in
particular the employment of children parts.

--
Andy