Due to the fall in rates on children's savings accounts, which is caused by the introduction of the government-sponsored child trust funds, alternative saving schemes and pensions for children are thriving. Investors can choose between two options, either they invest on the investor's name, meaning the investor has to pay tax on the investment or it's a bare trust, which means the investment is exempt from capital gains and income tax. Another option for people who want to make a longer lasting investment, as most saving schemes are put on the child’s name when it turns 18, is to save money in a pension for children. This investment is exceptionally interesting for those with higher incomes, as it is a form of tax relief. (Financial Times)
Nathalie Hespeels
L 2, F 2, C1
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