SJP Saving and paying for education
Putting a child through the private educational system is a big financial commitment for a family – but it doesn’t need to be one that a single household shoulders alone.
Starting to save little and often when the children are still young can make a big difference thanks to compound interest – and any member of the family can contribute to the ‘school fund’, either with a lump sum gift or a regular monthly contribution.
Students graduating from University in England in 2025 may face significant debt as they begin their career. As a grandparent, helping to reduce that debt by contributing towards fees can be a game-changer. You could consider gifting their inheritance early, or contributing into a ‘school fees’ savings pot as they’re growing up.
If you opt for monthly payments, these may count as part of your £3,000 gifting allowance. A good option for reducing your own IHT liability.
The levels and bases of taxation and reliefs from taxation can change at any time. Tax relief is dependent on individual circumstances.
