Children's Bonus Bonds and Investing for Kids

kranti

Would anyone be able to advise whether money that is invested in NSandI Children's Bonus Bonds is exempt from Inheritance Tax? What is the best way to invest tax free (income and inheritance) for children?

Am aware of the £100 rule for parents. Any advice appreciated.

Andy_Davies

Children's bonus bonds aren't exempt from the IHT rules - though everyone has an annual limit that they can make use of which may make the gift exempt...

See: http://www.direct.gov.uk/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/PlanningYourPersonalFinancesArticles/fs/en?CONTENT_ID=10013916&chk=FGCHVY

and

http://www.direct.gov.uk/MoneyTaxAndBenefits/Taxes/InheritanceTaxEstatesAndTrusts/InheritanceTaxArticles/fs/en?CONTENT_ID=10010612&chk=9Tm0VZ

for more information