Funding children in University with shares

ParentWithStudentKids

Help! I have been saving for a long long time to help fund my daughters at university. I have one going this year and one the next so 2 years of both of them away at the same time :eek:
I've been saving by a sharesave scheme. In year one I might just get away with not exceeding my capital gains tax limit. In years 2 and 3 I would exceed the limit and hence incur CGT. Is there a legal way I can contribute to their university education without incurring CGT? Can I transfer the shares to them direct and take advantage of their tax allowances?

Thanks!

CLAPTON

transfer some to your spouse and then she can sell them using her cgt allowance
use cash for the girls and keep the shares

ParentWithStudentKids

Ah yes, something I forgot to mention, I have no spouse so cannot use that route

xylophone

Can you sell up to CGT limit in this tax year? Presumably this will give you around £10,600.

https://www.gov.uk/junior-individual-savings-accounts/overview

Your younger daughter (and possibly your older daughter if under 18?) eligible for JISA? Have you see the Halifax offering?

http://www.halifax.co.uk/savings/accounts/branch-accounts/#juniorcashisa

" For children 16 and over, the relationship interest rate will automatically apply to the account" - currently this is 6%

Up to £3600 per child can be subscribed to JISA in this tax year and up to £3720 per child in 13-14.


You can sell up to the limit in tax year 13-14 and continue?

CLAPTON

how much money do you need per year?

if you sell and make 10,600 gain how much cash is that?

so if you sell now (before 5th april) and then after 6th april how much in total will you have

grey_gym_sock

just to check: you do know that it's the profit realized on shares sold that can't exceed £10,600 (this year) without paying tax? the total proceeds of the shares sold can be higher.

you can sell realizing profits up to the CGT limit each tax year, including the current year ending on 5 april.