INVESTING FOR THE FUTURE
Most parents want to help their children financially, whether it is making sure there is enough money for their education or eventually helping them to buy a property. An early objective as they grow up may well be to help children understand the value and importance of money.
Whatever the reason, tax will be a major factor to consider, as will the risks of giving children too much money too soon. It is therefore important for parents and others to appreciate the basic tax and legal rules, and the investment products that are suitable for children, to help achieve the goals set for them.
The Guide covers the following topics:
- How children are taxed
We are all subject to tax from birth, but planning can avoid unnecessary tax bills
- Tax-efficient investments for children
How to use investment products to save money for children
- The types of trust
Finding the balance between flexibility and tax efficiency
- How trusts are taxed
Understanding how the different types of trust are taxed.
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This publication is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The Financial Conduct Authority does not regulate tax advice, so it is outside the investment protection rules of the Financial Services and Markets Act and the Financial Services Compensation Scheme. This publication represents our understanding of law and HM Revenue & Customs practice as at 6 April 2021.