34 Finance & legal


Saving for their future


We talk to the experts to find out how you can save for your child’s future, setting them up for later life. Words: Leanne Macardle


We all want to do the best we can for our children, and thinking about their long-term finances can be an act of foresight that’s hugely appreciated in future years.


University With tuition fees costing up to £9,250 a year, it’s little wonder that parents want to save in advance — and it’s never too early to get started, says Rachel Springall, finance expert at Moneyfacts.co.uk. “Setting aside a minimum of £100


a month is a fantastic start,” she explains. “Apart from children’s savings accounts, another vehicle to consider would be a junior ISA (JISA) — savers can choose a cash interest option or a stocks and shares version, which in the long- term is likely to outperform the low interest rates on offer from most bank accounts today.” For those comfortable with


investment risk, going down this route could pay off, with analysis from Fidelity International revealing that saving £100 a month


into an investment JISA could generate £32,000 over 18 years, more than enough to cover three years’ worth of tuition fees.


First home It’s a similar story when it comes to saving for a first home. Again, starting early is key, as even small savings can lead to substantial returns over a decade or two. Paul Gibbens, property expert


at Housebuyers4u, recommends JISAs here as well, the bonus being that your child won’t pay tax on any interest earned. Alternatively, you could “open a savings account on


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Starting early is key, as even small savings can lead to substantial returns over a decade or two


behalf of your child and get them to start managing it, which can be done from the age of seven”. And, if parents are concerned


about their children getting their hands on a sizeable sum of money in their teenage years, they could approach a solicitor to discuss locking any savings into a trust, notes Rachel, so it’s ready for that all-important deposit.


Pension Many of us don’t give enough thought to pensions for ourselves, let alone our children, but Chris Eastwood, co-founder of Penfold, believes that paying into a pension for your child should be an option. “Under current regulations, you


can pay in up to £2,880 per year, and with the 20% tax relief added on top, this takes it up to £3,600,” he said.


Investing in your family’s future Buying a property is the biggest investment that most of us will ever make


However, paying too much stamp duty might leave you shorter than you need to be for the other impor- tant financial decisions you need to make. Whether it’s paying for the kids to


go to university, replacing a car or simply building a nest egg, a proper assessment of the stamp duty due on your purchase could save you thou- sands of pounds and help to make the next investment


in yours and


your family’s future. With as many as one in four


buyers paying the incorrect amount of stamp duty, solicitors facing increasing claims for


overpaid


stamp duty and HMRC describing its own calculator as merely ‘intended as a guide’, the question is whether you can afford not to take expert advice on this tax when the differ- ence could run to the tens of thou- sands of pounds or more. Cornerstone can provide you


with a full suite of services from a simple certification of the correct stamp duty due to complex advice on every aspect of your transaction to maximise the savings that may be available. Even if your purchase has already completed, the company may still be able to help, with £12m in historically overpaid stamp duty reclaimed from HMRC for our clients in the last year alone.


“Te money invested will be tied up until the child is in their mid-50s, but your contributions could alleviate some of the pressure on saving for a pension later on in life.” “Te compound interest can


provide a real boost to their retirement fund,” added Paul Wilson, consumer finance expert at Little Loans. “It's a tax-efficient way to get a nest egg started for your offspring.”


6 SEPTEMBER 2021 FAMILY VALUES — AN ADVERTISEMENT FEATURE IN


Call Cornerstone today on 01858 894349, email


newbusiness@ctatax.uk.com or visit the company's website atctatax.uk.com to fill in the simple enquiry form and see how it can make sure your property tax is properly done


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