Contents
A word to the wise
Employee pensions
A matter of trust
Pension policies
Family tax planning
Mr and Mrs
Inheritance tax
Employee cars and fuel
Borrowings and tax
Tax-free perks
Two jobs = too much NIC?
Give generously and save tax
Children's savings?
Company or trade?
Capital gains
Business tax
Investment limits
Should VAT be flat?
|
If a parent gives something 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 will establish a savings account with about £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 some savings tax-free.
 | ||||