Thanks for the info even if it does show that we have very limited options.
However, you mentioned the use of a trust with its reporting requirements but said tax would be charged on income. Could the child's tax free allowance be used before paying tax using this approach?
Presume investments with income paid gross could be made in the name of the trust?
There's no rush if you are so busy.
Having had a quick look on the HMRC link would I be right in thinking that an in possession trust would be best in this case as the tax rate is 10% without limit?
Also the investments I'm looking at are peer to peer lending to businesses so would that be seen as dividends as it certainly isn't savings. Not sure if you have come across Bonora based in Estonia but it's "dividend" or ROI is in the region of 21%.
What is the tax situation if my children receive a payout from the trust?
Can they then claim their allowance before tax is paid?
What is the tax situation in regard to the capital Gain on the assets whilst we await their 18th birthday which is fine we me and when the trust pays out what tax do they have to pay at that stage?
The assets put into the trust have yet to be decided and their particular tax treatment might sway our decision regarding what gets put in.
If say we put in a property or fine wine then it would hopefully increase in value.
Trying to minimise what the trust pays and the beneficiaries pay is really what I am trying to ascertain before we create the trust given it seems to be the best vehicle for our purposes.
No problem, thanks for your help.