Shared goals
Parvati’s father has recently retired and given his daughter and her husband £35,000 from the lump sum he received from his pension. Parvati and Michael have just had a baby girl, Ashia, and want to invest the money to help support their new family.
Simple investing
After speaking to their adviser, the couple decide to invest their money into our Delta Account. This investment bond is simple to manage and offers a tax-efficient way to invest. It also gives them the opportunity to get a better return than they could achieve by keeping the money with a bank.
Supporting children as they grow
Parvati and Michael draw on this money to help pay for family holidays and school trips for their daughter.
When Ashia is 21, Parvati and Michael review their investment and decide that they no longer need access to this money. They decide to give the policy to their daughter – they feel she is old enough and responsible enough to use the money wisely. Delta Account policies can be assigned to new owners and when this is done as a gift, there’s no immediate tax charge.
Reducing tax
Ashia decides to cash-in the investment and uses the money to buy a car. As Ashia has only just started working, she’s a low-earner. This means that the income tax she needs to pay on the profit is far less than the amount her parents would have paid if they’d cashed-in the policy instead.
What are the risks?
The value of your investment can go down as well as up and you may get back less than you invest. The way investments performed in the past is not a guide to how they’ll perform in the future. Tax rules depend on individual circumstances and may change. Speak to an adviser, if you need more information on tax.
