Is it legal?

Is it legal?

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One of the conditions of premium bonds is that there is an upper limit of £50K that can be held by one individual.

Occasionally I come across family units who appear to have bypassed this restriction by (eg) purchasing the bonds in their childrens' names.

I suspect that this is all on the up and up, provided that the funds have been really gifted to the children.

I worry, however, that if the children are used as nominees, but the beneficial ownership remains with the parent(s) whose £50K limits are already exhausted, then it would not surprise me if there was some rule or other to frustrate this arrangement.

Does anyone out there know of such?

With kind regards

Clint Westwood

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By bernard michael
25th Jun 2015 11:49

I'm not sure if it helps but these are the rules for children. Don't blame me for the font it's from the P Bond website

Premium Bonds can make a special gift for your child or (great) grandchild.

Until the child’s 16th birthday the parent or guardian nominated on the application looks after the Bonds, regardless of who buys them.

We’ll send the Bond record, any prizes won and payment for cashed in Bonds to the nominated parent or guardian until the child is 16.

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