Halifax Children's Reg Saver or Inv Trust Shareplans?

xylophone

Income over £100 arising in the bare trust, whether dividend or interest, will be taxed on the parent settlor, despite the fact that the child has his own income tax allowance.

However capital gains can be set against the child's own CGT allowance. See http://www.step.org/parental-settlements "Bare trusts for minor children".

Newbie2saving

Thanks all for the information.

xylophone - great links thank you.

Drp8713 - thatwas my original thought, thanks for asking the question.

atush - that was my thinking, but like the idea of splitting / edging my bets with a cash contribution too.

cloud_dog - thanks for the example. No idea what the little fella will want to do with his life, but I have concerns about huge lump sums being theirs at 18. I just want to plan the best way possible. Some very good ideas and like you stated I could split between cash and IT's / CTF.

I am using some of my CGT allowance annually within the Bed & ISA system, but my IFA sorts this out to maximise gain into the ISA.

Eco_Miser

Newbie2saving wrote: »

With the Halifax the money is only earning 3% on average as it is a Regular Saver

This is often stated, but it's wrong. You are earning 6% on the money deposited. The average money deposited is half the final balance.

Your statement is like saying money in a Lloyds Vantage is only earning 1.5% if you are still building up the amount.