There is (or at least used to be) an option to “receive” child benefit but not actually take the cash, which triggers the NI credits but doesn’t result in paying it back via self-assessment.
Also, even if parents put money in an account for their child and have to pay the interest on any income, they can still use the child’s CGT allowance if they want to draw that money for schools fees (again, this is my understanding and may not be right!)
A quick look on Google suggests that the option to claim but not receive child benefit is still available, who knows post the 6th.
Re the CGT allowance for kids - that is a really good point Jon. Junior ISA savings can't be accessed by anyone until the child is 18, and so not a good option if you are planning on using the money for school fees. I'm sure that a clever Investment Manager could create a "school fees portfolio" funded by the parents that generates zero income, only capital gains...indeed I think that's one of the reasons we bought zero dividend preference shares back in the day, but that's going back a bit!
There is (or at least used to be) an option to “receive” child benefit but not actually take the cash, which triggers the NI credits but doesn’t result in paying it back via self-assessment.
Also, even if parents put money in an account for their child and have to pay the interest on any income, they can still use the child’s CGT allowance if they want to draw that money for schools fees (again, this is my understanding and may not be right!)
Good stuff though Dave.
A quick look on Google suggests that the option to claim but not receive child benefit is still available, who knows post the 6th.
Re the CGT allowance for kids - that is a really good point Jon. Junior ISA savings can't be accessed by anyone until the child is 18, and so not a good option if you are planning on using the money for school fees. I'm sure that a clever Investment Manager could create a "school fees portfolio" funded by the parents that generates zero income, only capital gains...indeed I think that's one of the reasons we bought zero dividend preference shares back in the day, but that's going back a bit!