Premium Bonds for a child and HMRC Trust reporting
Posted: August 17th, 2022, 12:08 pm
(I started this thought process in another thread viewtopic.php?f=49&t=35591&p=523041#p523041, but am creating a new thread for this in its own right)
It is possible to buy Premium Bonds for a child under 16
https://www.nsandi.com/products/premium-bonds
From the brochure (https://www.nsandi.com/files/asset/pdf/ ... ochure.pdf) “Children under 16 can hold Premium Bonds. However, the Bonds will need to be looked after by the child’s parent or guardian”.
Having just done HMRC's Trust reporting (https://www.gov.uk/guidance/register-a- ... -a-trustee) for a couple of my life insurance policies which are in trust, and reading threads on here, got me thinking about Premium Bonds for a child under 16 and whether the PBs should be reported under HMRC's Trust reporting. It seems a bit of a minefield and there is no clear answer (like much of the TRS), so I'm posting here for anyone else's thoughts and comments while I go and do some thinking and some further research.
Preliminary bits of information:
https://www.tax.org.uk/how-grandparents ... -oligarchs:
There is a chink of light. In the view of some experts in this area there are good arguments to say that the small bare trusts holding premium bonds and other types of regulated product could fall within an exemption from the Trust Register for legislative trusts. This seems to be the view HMRC have taken on Junior Isas where they have now relented.
https://www.litrg.org.uk/tax-guides/sav ... r-my-trust:
Premium bonds held for children. At the moment it is unclear whether this sort of bare trust arrangement would need to be registered. We will update this guidance if HMRC provide clarity on this point.
It is possible to buy Premium Bonds for a child under 16
https://www.nsandi.com/products/premium-bonds
From the brochure (https://www.nsandi.com/files/asset/pdf/ ... ochure.pdf) “Children under 16 can hold Premium Bonds. However, the Bonds will need to be looked after by the child’s parent or guardian”.
Having just done HMRC's Trust reporting (https://www.gov.uk/guidance/register-a- ... -a-trustee) for a couple of my life insurance policies which are in trust, and reading threads on here, got me thinking about Premium Bonds for a child under 16 and whether the PBs should be reported under HMRC's Trust reporting. It seems a bit of a minefield and there is no clear answer (like much of the TRS), so I'm posting here for anyone else's thoughts and comments while I go and do some thinking and some further research.
Preliminary bits of information:
https://www.tax.org.uk/how-grandparents ... -oligarchs:
There is a chink of light. In the view of some experts in this area there are good arguments to say that the small bare trusts holding premium bonds and other types of regulated product could fall within an exemption from the Trust Register for legislative trusts. This seems to be the view HMRC have taken on Junior Isas where they have now relented.
https://www.litrg.org.uk/tax-guides/sav ... r-my-trust:
Premium bonds held for children. At the moment it is unclear whether this sort of bare trust arrangement would need to be registered. We will update this guidance if HMRC provide clarity on this point.