College Fees: gifting the child some equities

[hastalavista]

College fees and other costs are running about 400 a month for a client.

Would welcome some thoughts on the idea of the parent gifting some shares to the student so as the dividend income can be used to part fund college.
I know the PAYE allowance cant be used but my client currently pays tax at higher rate on the dividends so he asked the question.
Thanks

 

[ClubMan]

I'm sure that you've considered these but...

Does such a transfer trigger any capital tax events at either/both ends of the transaction?

Presumably stamp duty (at half the normal rate due to consanguinity relief?) on the transfer would be payable by the child?

Would dividend income make the child self assessed or anything leading to a bit of a bureaucratic/paperwork burden?

 

[44brendan]

Would dividend income make the child self assessed or anything leading to a bit of a bureaucratic/paperwork burden?

Group threshold for CAT purposes to a son/daughter is currently 332K before tax is payable. He/she would have personal tax allowances but not PAYE allowance in respect of this income and surplus is likely to be chargeable at lower rate.
No real bureaucracy in completing an annual tax return on income received. At face value this appears to be a sensible transaction which would reduce the tax burden but please note that more complete information would be required before any full assessment could be made.

 

[Gekko]

College fees and other costs are running about 400 a month for a client.

Would welcome some thoughts on the idea of the parent gifting some shares to the student so as the dividend income can be used to part fund college.
I know the PAYE allowance cant be used but my client currently pays tax at higher rate on the dividends so he asked the question.
Thanks

Is your client paying you for advice that you're deriving from an anonymous internet forum?

 

[hastalavista]

Is your client paying you for advice that you're deriving from an anonymous internet forum?

This, Gekko, is none of your business.

 

[Gekko]

This, Gekko, is none of your business.

It's everyone's business if a so called professional is charging clients for advice he or she has to obtain from an anonymous internet forum.