University fees planning

Lots of parents want to help their children in life and many will want to ensure that they obtain the best possible education available, often leading onto university and that sought after degree, or it may simply be creating a lump sum for an event such as a deposit on a house, a car or a wedding.
Unless you are very wealthy and can provide this gift from savings I would suggest the earlier you plan and start saving the better.
The figures are somewhat surprising, in todays terms the average annual expenditure for a full time student is £13909, so if you were planning for a child to start University in 10 years time and assuming inflation of 2.5% per annum the amount of savings needed would be circa £53000.
Students in England can currently apply for a student loan of up to £9000, for more information on student loans visit
When it comes to savings there are many ways to do this and a big factor will be the time frame allowed and attitude to risk together with the required security of capital.
Investment bonds are a good option, I particularly like segmented offshore Bonds, these enable gross roll up on the growth achieved and assignment of segments to the student for tax efficient encashment.
Isa’s are tax efficient as any growth can be stripped out free of income and capital gains tax, there is an annual contribution allowance currently of £15240 (2016/2017).
Junior ISA’s (JISA) are a good way to save in the childs name with a current annual allowance of £4080, with the advantage that access is denied until the age of 18 has been attained.
Another option could be a General Investment Account (GIA) to utilise your annual capital gains tax allowance currently £11100 per annum.

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