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
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If a parent gives money or shares to a child under the age of 18, the parent remains taxable on income if it is more than £100 a year. So you cannot enjoy the benefit of the child's personal allowances by putting investments or deposits in their names. There is no similar rule for gifts from grandparents. Of course, the Revenue might be upset if a parent gave money to a grandparent to give to a child, but a genuine and straightforward gift from a grandparent, which does not originally come from the parent, can be put into a bank account for a child and no tax needs to be paid on the interest (as long as it is less than the child's allowances). In 2003, the Chancellor announced a new scheme to award children a "trust fund" at birth. This applies to anyone born from September 2002 onwards, and establishes a savings account with £250 from the Government to start with. The money cannot be touched until the child is 18 (so not before September 2020!). The accounts are now in operation, and if you have a child who qualifies, you can add to the account (up to £1,200 a year) and the £100 'income-from-parent' rule doesn't apply. So the child will build up savings tax-free.
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