Government Bonds | Child Investment

Childrens government bonds

Government bonds as a tax-paid investment, these government issued bonds are taxed at the corporate tax rate and income does not need to be reported on an investor’s tax return. If you are working and have a tax rate of 30% or higher, an investment bond would be quite an attractive option for a child investment. Usually they have investment options much like managed fund and they will have ongoing fees for management and administration, adding to them each year but only up to 130% of the previous year’s contribution, so if you miss a year, then you cannot contribute the next year. Accessing them is easy providing its within the 10 year period but then tax would be calculated at the time and a credit provided for tax already paid. A great option for families wanting to save for their children for a child investment.

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