Menu All sections
Sectors
Specialist sectors
Popular services
General enquiries Call us on 0800 6526623 Send an enquiry
Lovewell Blake Financial Planning
Matt Crawley, Lovewell Blake corporate finance partner
Lovewell Blake Corporate Finance
Sectors
Specialist sectors
Popular services
All services

Gifting for children

14.12.2020
The Marketing Team
Financial Planning
Stock image of a child

It’s that time of year again when our thoughts come to gifting to our nearest and dearest. When it comes to the children in our lives this often means a new toy, or a new outfit. But what about those who already have everything they need?

Stock image of a child

Gifts of money are often considered for our children and grandchildren and there are a number of investment options you could consider, each with their own set of benefits and drawbacks:

Junior ISA (JISA)

  • Invest up to £9,000 for the 2020/21 tax year
  • Available from birth
  • Tax free growth
  • Access from age 18

Premium Bonds

  • Chance to win cash prizes (paid to parent)
  • Invest from as little as £25 to a maximum of £50,000
  • Child can access from age 16

Pension

  • Invest up to £3,600 gross per annum (£2,880 net) each tax year
  • Amount falls within annual gift allowance
  • Tax Free Growth
  • Access at retirement (currently 55)
  • Encourages saving habit for the future

Cash

  • Access at any time
  • No limits on gift amount (larger gifts may be subject to Inheritance Tax)

Trust

  • Access is ‘gated’ by trustees
  • No limits on gift amount (large amounts may be subject to Inheritance Tax)
  • Can be accessed at any time for the benefit of the child(ren) (for example for education fees)

Whilst cash might be top of the wish list for many children, these alternatives might just help have a longer term benefit and/or encourage good money habits.  

For more information

Get in touch

Related news

Stuart Lawn, Lovewell Blake Financial Planning

What is Inheritance Tax?

01.09.2021
Stuart Lawn
Financial Planning, Tax
3 min read

Many of us could be caught out by Inheritance Tax (IHT). Contrary to popular belief, you do not need to be mega-rich to owe HMRC a chunk of money when you die. I think most of us would prefer as much as possible to go to our loved ones, rather than HMRC.

Man working, stock image

The additional benefits of EIS and VCT investing

12.07.2021
Sharon Mattheus
Financial Planning
4 min read

A growing number of investors are seeking ways to invest tax-efficiently other than through their pensions and Individual Savings Accounts (ISA). The reason being that those investors have fully used their ISA allowances and have significant pension contributions have compounded over the years. Pensions have a tax-efficient lifetime allowance, above which clients question why they should keep adding if they are going to get taxed later at a higher rate!

All News
Personal Tax and Private Clients

Wide-ranging tax planning and compliance services for individuals seeking advice and guidance from our team of experienced and highly qualified professionals.

Startup and High Growth Companies

Friendly and coherent advice and guidance on accounting and tax matters for small business owners including those starting out for the first time.

SMEs and Family Businesses

Established businesses requiring accounting and tax compliance services, forward thinking tax planning advice and the support to help your business succeed.

Corporate Advisory, Tax and Audit

Our full range of enhanced corporate services aimed at large companies and those requiring audit, assurance, corporate tax advisory and diverse tax planning services.

Specialist
Glossary

Test

This is a test definition

more