Investing for the next generation

trusts

The Inland Revenue is sympathetic in its treatment of investments held for children when it comes to income, capital gains and inheritance tax

Over the past few years saving or investing on behalf of a child has become a hot topic on the personal finance agenda. Surveys abound with terrifying headlines, illustrating the cost of bringing up children in today's world. This can range from £100,000 to £250,000, depending on whether they wear Gap or Armani, Ladybird or Boden. Then the politicians get in on the act, telling us that, despite tax rises, we cannot expect our children to enjoy the free college or university education of yesteryear. Our babies must expect to be crippled with debt if they want to hang out at college for a few...