Children
Children have their own allowances and tax bands, as well as their own capital gains tax annual exemption, and in some cases, there can be a tax saving by transferring income producing assets to a child.
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Consider transfer of assets from other relatives such as grandparents, and/or employing teenage children in a family business to use personal allowances and the basic rate band.
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Tax free savings
A Junior ISA or a Child Trust Fund (CTF) account offer tax free savings opportunities for children. Existing CTF accounts continue alongside the Junior ISA (a child can only have one type) but can be transferred to a Junior ISA at the request of the registered contact for the CTF.
In 2017/18, both CTF and Junior ISA accounts allow parents, other family members and friends to invest up to £4,128 yearly in a tax free fund for a child. There are no government contributions and no access to the funds until the child reaches 18.