Festive Tax Tips

Festive Tax Tip: Educational costs planning.

With the cost of sending children to university or grandchildren to private school significantly increasing, now is the time to plan for alternative ways in which to fund these costs in a tax efficient manner.

Usually these costs are incurred by parents and grandparents out of their net income after tax which further increases the actual cost. However, where the parent or grandparent is a shareholder in their own company, in certain circumstances, it may be possible to issue shares and pay dividends on these shares to meet the costs whilst achieving no additional tax implications for the parent or grandparent.