Tax Wrappers - How to address the spiralling costs of further education?

Fiduciary Wealth Team

As most parents and grandparents are painfully aware the cost of university education in England is set to increase significantly with many institutions setting their annual tuition fees at £9,000 per annum with effect from 2012 and then there are accommodation and living expenses to take into account.

One way in which parents and grandparents can help is by utilising the flexible benefits of an offshore bond. By taking out a bond whilst a child is relatively young the bond will enjoy tax free growth whilst the bondholder retains the option of withdrawing 5% per annum tax free.  Once the child reaches the age of 18, segments of the bond can be assigned to them and any withdrawal will be assessed on their personal tax situation rather than that of the assignor. The likelihood is that the student may well have unused personal allowances which will can significantly reduce any tax liability on a withdrawal.

So if you want to ensure that your children or grandchildren don’t start their adult life saddled by a huge debt a bond could be the perfect solution.

To find out more telephone Tel: +350 200 50982 or email