ABSTRACT
This chapter explains the ways that family might be able to support in laying the foundations of future financial wealth. It discusses the aims and features of some savings and investments for younger people. The chapter explains how gifts and inheritances are taxed in the UK. National Savings & Investments (NS&I) is a government agency whose remit is to raise money to help meet the UK government's Public Sector Borrowing Requirement (PSBR). There are four main personal taxes in the UK: Income Tax, National Insurance contributions, Capital Gains Tax and Inheritance Tax. A trust is a legal arrangement, used mainly in the UK, where money and/or assets are set aside to benefit one or more people but are legally held and looked after by someone else. There is one type of trust that does not require a formal trust deed and legal advice: a bare trust. The chapter considers key advantages and disadvantages of the tax implications.
