Tradefair & Financials
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05 Sep 10
16:34
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10 Jan 02
Because interest rates are so poor I rang up Fidelity last week thinking I could just open a unit trust in each of the kids names but unfortunately Fidelity said each fund would have to be in my name and as I didnt want to put "their" money in my name I didnt pursue it. Can anyone tell me if this is a standard policy across all unit trust companies and if it is, is there another way around it? Seemed ridiculous to me.
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The difficulty you are having is due to the view that HMRC take. They consider that parents setting up 'schemes' for their children are merely a tax avoidance ruse that utilises the childs personal tax allowance for the benefit of the parents.
If the children have relations, such as grandparents, they can invest on behalf of their grandchildren. I take it your children are young? If so, think twice about tracker funds. Look to longer term 'riskier' investment strategy. Involve them at an early age with investment decisions - after all you woudn't want the 'little darlings' suing you if it all 'turns turtle'. |
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clyde, I dont know the UK tax system but can you buy shares in the kids names? Even if you have to pay adult tax on it?
If so you could buy some with a view to giving it to them once they reach say 30yo.thats give a stack of time to grow and means the kids should be over their 20's and less likely to blow it. Should you cark it b4 then the shares are already in their names. |