Helping your children buy a home is a generous gift, but starting an investment plan early can give them an even bigger advantage. Regularly setting aside funds from a young age means even small amounts can grow significantly over time, thanks to the power of compounding.

By the time they turn 18, they could have a substantial fund to help with university costs or a strong deposit for their first home.

Using gifting allowances to fund investments can also be a tax-efficient way to transfer wealth. Current allowances include:

• A lump sum of up to £3,000 per year
• Unlimited gifts of up to £250 per person, per year

By taking advantage of these allowances, parents, grandparents – or anyone – can pass on wealth without triggering Inheritance Tax penalties.

Every family’s situation is different, and gifts & trusts* can play a key role in estate planning. If you’d like to explore how they could work for you, get in touch for expert advice.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

*Trusts are not regulated by the Financial Conduct Authority.