Friends of mine at a leading UK Benefits Consultancy have recommended a scheme to the Inland Revenue around Child Trust Funds.
The idea is to offer a 'salary sacrifice' based scheme to encourage parents to invest up to £1,200 for a child per year. Income arising on the money and investments in a CTF account is already exempt from tax. HM Revenue & Customs are keen to promote Child Trust Funds as they see this as a key way for us to save for future generations as well as to encourage a savings habit in them.
Financial education is a key part of the CTF and all children will receive financial education to help them manage their money with future needs in mind. Information will be available for parents, teachers and children over the lifetime of a child's CTF account.
No word back from the Inland Revenue yet...further information when available. But I think we can all agree that it is a benefit with a truly noble cause.
I would be interested in any comments on this benefit or any alternative views or strategies that people may be putting in place.
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