School Fees Planning

School Fees Planning

There’s no doubt that the best education that money can buy will help a child be academically successful, but also provide a non-academic experience that may serve them well as an adult. Grandparents may wish to help their children fund the cost of their grandchildren’s education in a tax efficient manner.

 

Suitable Clients

· Parents of children who are subject to high rates of tax on extracting money from their existing company. 

· Parents who have children for whom fees and other costs are being paid from their net income.

· Grandparents who hold shares in the company or if they do not currently hold shares, they are willing to invest in their child’s company.

· Uncles/Aunts who hold shares in the company or if they do not currently hold shares, they are willing to invest in the parent’s company.

How It Works

Grandparents could consider settling their shares into a bare trust which holds the shares for the benefit of the Beneficiaries i.e. their grandchildren. This gives the grandchildren the benefits of holding the shares but without any control.


Income that is generated on the shares held in trust will be subject to income tax, but the dividend income arising on the shares is assessed on the grandchildren (not the grandparent) who would potentially have access to all or the majority of their personal allowance and dividend allowance.

Benefits

We envisage the following benefits:

· Allows grandparents to assist their children in a tax efficient manner by playing a large role in funding their grandchildren’s education.

· May be able to fully utilise the personal allowance of £12,570 and dividend allowance of £2,000, giving £14,570 of income that can be extracted without an income tax charge from the company, per child. 

· Control of shares remains with the grandparent as trustees.

· No ongoing costs but savings continue into future years.

School Fees Planning

There’s no doubt that the best education that money can buy will help a child be academically successful, but also provide a non-academic experience that may serve them well as an adult. Grandparents may wish to help their children fund the cost of their grandchildren’s education in a tax efficient manner.

School Fees Planning

There’s no doubt that the best education that money can buy will help a child be academically successful, but also provide a non-academic experience that may serve them well as an adult. Grandparents may wish to help their children fund the cost of their grandchildren’s education in a tax efficient manner.

Suitable Clients

· Parents of children who are subject to high rates of tax on extracting money from their existing company. 

· Parents who have children for whom fees and other costs are being paid from their net income.

· Grandparents who hold shares in the company or if they do not currently hold shares, they are willing to invest in their child’s company.

· Uncles/Aunts who hold shares in the company or if they do not currently hold shares, they are willing to invest in the parent’s company.

How It Works

Grandparents could consider settling their shares into a bare trust which holds the shares for the benefit of the Beneficiaries i.e. their grandchildren. This gives the grandchildren the benefits of holding the shares but without any control.


Income that is generated on the shares held in trust will be subject to income tax, but the dividend income arising on the shares is assessed on the grandchildren (not the grandparent) who would potentially have access to all or the majority of their personal allowance and dividend allowance.

Benefits

We envisage the following benefits:

· Allows grandparents to assist their children in a tax efficient manner by playing a large role in funding their grandchildren’s education.

· May be able to fully utilise the personal allowance of £12,570 and dividend allowance of £2,000, giving £14,570 of income that can be extracted without an income tax charge from the company, per child. 

· Control of shares remains with the grandparent as trustees.

· No ongoing costs but savings continue into future years.

Sarina Issap

Associate to CEO

AMS has allowed me to work strategically and collaboratively with senior leaders with different areas of expertise in order to solve challenging problems in a fast-paced environment. I am currently studying for my MBA at Harvard and transferring what I’ve learnt during my studies into practice has provided me with many opportunities to further my career

How We Do

What We Do

Which area can we help you with?

Corporate Restructuring

Capital Allowances

Inheritance Tax Planning

Property Restructuring

Share Option Schemes

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