There’s nothing better to get you in the spirit of the season than giving. Even though sometimes it’s hard to find the right gift, you can’t really go wrong with the gift of cash. Whether you want to help fund a loved one’s education, their wedding, contribute to a deposit for a first home, or simply help them save for the future there are plenty of smart ways to help.
This does not constitute advice and advice should be sought in all instances before acting on it.
Here are a few ideas for the holiday season.
Junior ISAs are a great tax-efficient way to give money. Junior Individual Savings Accounts (JISA) are available for children born after 2 January 2011 or before 1 September 2002 who do not already hold a Child Trust Fund. The annual savings limit is £9,000 for the current tax year.
There are two types – a Junior Stocks & Shares ISA and a Junior Cash ISA. You can contribute to either or both, as long as your contribution is under the limit. Children gain control over the account at 16, but cannot withdraw from it until the age of 18.
Child Junior SIPPs
We firmly believe that it’s never too early to start saving for retirement. While childhood might seem a little early to be thinking about retirement, it’s worth considering for the benefits of compounding alone. A Junior Self-Invested Personal Pension Plan (SIPP) is a personal pension for a child and works just like an adult one.
Parents and grandparents can save up to £2,880 into a SIPP for a child each year. The best part is that the Government will top it up with 20% tax relief, giving your loved one’s pension fund quite the boost. If payments continue, you can help them build a substantial pension.
Christmas is a great time to give a gift that keeps on giving. A gift of money to your children or grandchildren during the holidays can really benefit them in the long run. If you want to give your children or grandchildren a head start for their future finances and help yourself save tax at the same time, get in touch.
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