{"id":1687,"date":"2019-12-02T11:22:00","date_gmt":"2019-12-02T11:22:00","guid":{"rendered":"https:\/\/www.brewin.co.uk\/group\/media\/news-and-comments\/2020-01\/brewin-dolphins-top-five-gift-ideas-they-will-thank-you-for-later\/"},"modified":"2023-11-06T09:16:50","modified_gmt":"2023-11-06T09:16:50","slug":"brewin-dolphin-top-five-gift-ideas-they-will-thank-you-for-later","status":"publish","type":"rbcwm_news","link":"https:\/\/www.brewin.co.uk\/group\/media\/news-and-comments\/2019-12\/brewin-dolphin-top-five-gift-ideas-they-will-thank-you-for-later","title":{"rendered":"Brewin Dolphin’s top five gift ideas they will thank you for, later"},"content":{"rendered":"

With only 23 shopping days until Christmas, now\u2019s the time to start thinking about presents. But rather than joining the crowds of Christmas shoppers, why not use your gift allowance and consider some alternative presents for your children or grandchildren that won\u2019t be cast aside by the time the Christmas tree comes down.<\/p>

Carla Morris, Financial Planner, Brewin Dolphin,<\/strong> says: \u201cParents or grandparents wanting to gift without incurring inheritance tax can make use of the annual gifting allowance which can be spent in a number of ways. Not only will you save shopping time, and wrapping paper, you could be contributing towards something really valuable for your children or grandchildren for the future – a present that could last a lifetime<\/em>.\u201d<\/p>

Carla\u2019s top five alternative Christmas presents are:<\/p>

Junior ISA<\/strong> \u2013 The annual \u00a33,000 gifting allowance can be used to fund a junior ISA, or JISA, the limit is currently \u00a34,368 for the tax year 2019\/20. JISAs are a great and tax-efficient way to save for children or grandchildren \u2013 especially if you start contributing to them early on in a child\u2019s life. The long-term nature of JISAs also makes them ideal for saving in stocks and shares. Contributing the full allowance of \u00a34,368 \u2013 or \u00a3364 per month \u2013 for 18 years into a stocks and shares JISA, assuming a return rate of 4% net of fees (real returns have been higher) and inflation follows the bank of England target rate of 2%, could create a fund of \u00a3128,339. Even a lower contribution of \u00a3100 per month could create a pot of \u00a333,205.<\/p>

Pension <\/strong>\u2013 Children are allowed pensions, although the recipient would not have access to their pension until they reach the age of 55, making it a much longer-term option – is a way of offering parents and grandparents the opportunity to provide a financial contribution safe in the knowledge that their child can only access the money when they are older. The family can contribute up to \u00a32,880 net per annum, which the government will top up to \u00a33,600 through tax relief. Contributing the full allowance over the same period as a JISA \u2013 18 years \u2013 before ceasing and allowing compounding to do the remainder of the work could create a pot of \u00a399,616. This figure is based on an average annual return of 4% net of fees.<\/p>

Savings Accounts<\/strong> \u2013 There are savings accounts for children, currently paying around 3% AER* for easy access.  If you already have a children\u2019s savings account and are thinking of topping up for Christmas make sure you check the interest rate first – there are a lot of accounts out for there for both children and adults so it\u2019s good to shop around for the best interest rates. Some savings account will also come with a cash card for older children which is a great way to help them learn how to budget and look after their money.  <\/p>

Investment Account<\/strong> \u2013 This is another way to save and investment accounts can be opened by anyone for a child, using a lump sum or regular premiums. For those who have exceeded their annual JISA allowance, investment accounts can hold a portfolio of funds or shares, either picked by yourself or put together by an adviser. Held under a bare trust, the investments are held by a trustee (e.g. a grandparent) for the benefit of the child who will have access to the money from age 18.  If the money is put into the trust by anyone other than the parents the contents are taxed as if they belong to the child. This includes gifts from grandparents and usually means that there is little or no tax to pay on income or gains. It\u2019s worth noting that If income from a parental gift exceeds \u00a3100 per year, the parent will have to pay tax on all the trust\u2019s income until the child reaches 18.<\/p>

Premium Bonds<\/strong> \u2013 NS&I premium bonds are a savings account you can put money into (and take out when you want), and the interest paid is decided by a monthly prize draw. You buy \u00a31 bonds and each has an equal chance of winning, so the more you buy, the more your chances improve. The minimum purchase amount is \u00a325 for one off purchases and monthly standing orders, the maximum amount you can hold is \u00a350,000. Anyone can now buy premium bonds for under-16s and nominate the child\u2019s parent or guardian to hold them. However, the average winnings equate to an interest rate of 1.4% rate**, so you will have the chance of winning a million but more likely, you\u2019ll get the equivalent of a poor interest rate.<\/p>

*HSBC MySavings \u2013 3% AER on up to \u00a33,000 and must be aged between 7 and 17 years old https:\/\/www.hsbc.co.uk\/savings\/products\/mysavings\/<\/a><\/p>

**https:\/\/www.nsandi.com\/premium-bonds<\/p>

 <\/p>

PRESS INFORMATION<\/span><\/strong><\/p>

For further information, please contact:<\/p>

Richard Janes richard.janes@brewin.co.uk<\/a> \/ Tel. +44 (0) 20 3201 3343<\/p>

Anita Turland: anita.turland@brewin.co.uk<\/a> \/ Tel: (0) 20 3201 4263<\/p>

Payal Nair payal.nair@brewin.co.uk<\/a>  \/ Tel: +44 (0) 20 3201 3342<\/p>

Camarco: brewin@camarco.co.uk<\/span><\/a> \/ Tel: +44 (0)20 3757 4980<\/span><\/p>

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NOTES TO EDITORS<\/strong><\/p>

Disclaimers: <\/span><\/p>