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UK Financial Adviser

What a great Christmas gift…

Sometimes it can seem like your children or grandchildren have every new toy and book on the market, so when it’s time to buy them a present you have no idea where to start. Why not get them a Junior ISA? While it may not be the most exciting present for a child to receive, it will most certainly be the most valuable. 

With house prices and university fees on the rise, it’s never been more important to start putting money aside for a child’s future. Junior ISAs are locked away until the child reaches the age of 18. After that, they can convert it to a cash ISA if they don’t use it for university fees. Anyone can contribute to the Junior ISA – a great option for friends and relatives looking to gift money to a child, as a child is only allowed to have one cash JISA. 

This example assumes a growth rate of 5%.

Also for you to gift the money it also acts as a great start to any inheritance tax plan. Everyone is able to gift up to £3,000 per year without facing any inheritance tax charges. Another allowance you could use is small cash gifts where you can gift up to £250 to as many people as you like during the tax year, as long as that person hasn’t been the recipient of your £3,000 gift. Both of these are exempt gifts and you don’t need to declare anything to HMRC if you remain within these allowances.

With Christmas right around the corner, this may just be the perfect gift!      

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