Hatch a better future for your children or grandchildren
Saving a little bit here and there over the child’s early years could grow into
a tidy sum that may be used to help with the ever increasing costs associated
with bringing up children.
The SVM Saving Scheme for Children is a flexible investment trust based savings
scheme that enables parents, grandparents, godparents or any other relative or
friend to give a child a head start in life.
The scheme is a low cost option available to any adult who wants to invest for
children. There is no initial management charge and no annual management
charge. You can save monthly from as little as £25 per month, or invest a lump
sum of £200. Of course there is nothing to stop you investing a lump sum and
investing on a monthly basis.
You can choose to invest in one or both of the available funds -
SVM Global Fund and
SVM UK Active Fund.
Our Saving Scheme for Children allows you to invest on a child’s behalf in one
of two ways – as a designated account or by setting up a bare trust which is a
more formal and possibly tax efficient way of saving and investing for
children. The key differences are detailed opposite.
For further information on the SVM Saving Scheme for Children simply select and
print the Saving Scheme brochure, the Key Features Document and the appropriate
Application Form(s).
We hope that the brochure, the Key Features Document and the Application
Form(s)will help to answer all of your questions, but if you need to clarify
anything or you cannot print literature, you can request a hardcopy to be sent
to you. Please contact our Helpline on 0800 019 9440. Alternatively, you can
send us an email to info@svmonline.co.uk.
Please note that we are unable to provide financial advice.
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Designated Account
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Bare Trust
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Ownership
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The money is controlled by you, but is designated for the child. Allows you to
retain ownership of shares, and decide when to hand over the investment over to
the child. There is the option to transfer the investments to the child on
reaching the age of 18.
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The money is held in trust for the child. You have no rights to the shares, as
the Trustees retain legal control until the child reaches 18 - at which point
the shares are automatically transferred into the child’s name.
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Withdrawals
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Yes
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Yes (as long as for the child’s benefit).
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CGT Applies
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Yes, treated as a gain of the adult if gains exceed the annual CGT allowance
(note 1).
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Yes, treated as a gain of the child if gains exceed the annual CGT allowance
(note 1).
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Income Tax
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The investment and any income generated may be counted as the Adult’s tax
allowance (if the investment generates income more than £100 per annum (note
2)).
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Investments held are taxed in the child’s name. Therefore the investment and any
income generated is counted as part of the child’s tax allowance.
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Inheritance Tax
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Money held in a designated account is not treated as a gift and remains within
your estate for IHT purposes.
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If you gift more than £3,000 per annum to a bare trust, there may be inheritance
tax to pay if you die within 7 years of making the gift.
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The information detailed above is for general guidance only. For more detailed
tax advice, you should speak with your financial adviser. The value of your
investment and any income from it can fall as well as rise and you may not get
back the amount you invest.