Year End Tax Review 2008 Contents New Year's resolutions Investment limits Borrowings and tax Family tax planning Mr and Mrs Give generously and save tax Jam today, or jam tomorrow? Tax payback - tax credits Bringing it back home Children's pensions? A matter of trust Children's savings? All change for gains Second homes Portfolio gains Capital ideas Tax-free perks Employee pensions and NIC Pension policies Employee cars and fuel Business tax Pay rise for the other half? Company or trade Two jobs = too much NIC Should VAT be flat? VAT and cash Inheritance tax One careful owner

Children's pensions? "Stakeholder pensions" are available to almost anyone, regardless of having earned income. A contribution of £2,808 will be "topped up" by a tax refund of £792 from the Revenue to the insurance company, even if the policyholder pays no tax at all. Stakeholder pensions are also supposed to have very low charges. Some people who want to make long-term provision for their children have set up such policies. Although the child will not see the money until the age of 55 or possibly even older, an annual contribution of £2,808 from birth should provide a substantial fund by the age of 18 which would make a good start for the child's pension planning. The parent would not be subject to any inheritance tax on the contributions, so it would be more tax efficient than leaving a large legacy in a Will. Action Point! Is this a good way to save for your children?