Family Savings

Funding for Education 

Many parents and grandparents are now looking to the financial marketplace to provide a solution to the education funding problem. School fees have long needed forward planning, but with higher university fees now in the picture, the need is even greater.

We will help you build an investment portfolio that will contribute towards these fees, assessing your needs and the suitable options open to you. We will ensure that you take advantage of tax-free opportunities wherever possible, and that we make best use of every appropriate family member’s tax allowances.

Child Trust Funds 

The Government introduced this investment vehicle for children born on or after 1 September 2002. Each child was given a voucher for either £250 or £500 (subject to personal circumstances) to put into an approved fund. The Government has now stated that whilst further payments can be added to this initial amount by others (eg parents, grandparents) over the years, no further payments will be made by the State and no new CTF plans will be created. The fund cannot be used until the child reaches 18 years of age.

Child-Friendly Savings 

There are a number of investment opportunities that are tailored for minors:

• Children’s Bonus Bonds, available from National Savings.
• STAKEHOLDER PENSIONSTAKEHOLDER PENSION
  A low cost pension scheme introduced by the government in 2001 to encourage people to make provision for their financial future. Stakeholder pensions are aimed at those who may not have been able to afford a personal pension and were not eligible for an occupational or group scheme. Plans (contributions limited to £3,600 per year)

Gifts

It is possible to make valuable gifts to friends and family members, but beware, you could be incurring a liability in terms of INHERITANCE TAX (IHT)INHERITANCE TAX (IHT)
Tax payable after you die on the value of your assets in excess of a certain threshold value. Certain gifts between husband and wife are exempt. IHT is also chargeable in certain circumstances while you are still alive.. However, there are a number of annual and special exemptions:

• First £3,000 of transfers in any Tax Year are exempt
  Any unused portion of that exemption may be carried forward for one year only to use in the following tax year
• Outright gifts of up to £250 per annum to any number of persons are
  exempt
• Gifts to Charities are wholly exempt

Wedding Gifts

Gifts to either party to a marriage can be exempt, as follows:

• £5,000 from a parent
• £2,500 from a grandparent
• £1,000 from any person  

Regular Gifts out of Income

This is an under-used exemption, whereby if income is generally in excess of annual living expenses, you can establish a regular pattern of giving to make use of this exemption. Once a pattern is established, it can be viewed as normal expenditure and the £3,000 gift exemption will still be available in addition.

Contact us for a free initial consultation for assistance in deciding which areas are of interest to you.