If you have children under 18 and are expecting to make capital gains on any investments, consider setting up a bare trust, says The Schmidt Report.
By holding a proportion of your shares or an investment property on which you are expecting to make gains in a bare trust, you can take advantage of their annual capital-gains tax (CGT) exemption. This is £10,100 for the 2009-2010 tax year, so with a CGT rate of 18%, the saving is around £1,800 tax per year per child.
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