Newborn Cash Gifts

[OscarJ]

Hey all

My wife and I welcomed our first son into the world 2 weeks ago which has been a great experience so far! We have received some cash from friends and family so I am looking to put it somewhere to grow over the next 16-18 years (and add to it when possible).

I guess one key constraint is that I am not currently a UK resident nor am I a UK tax payer so this rules out some options. In 2 years I will be returning to the UK so need to think about whether before then it would be possible to let a family member handle the cash and investment until we return.... although I don’t know whether that would even be permissible. We aren’t talking a huge sum of money (circa £3k).

It feels like a ftse tracker with one or two funds would be a wise destination to put the money - but I welcome any other suggestion.

[elanfan]

Open a Junior ISA with Hargreaves Lansdown. Put half in Lindsell Train sit back and watch it grow. Can all be done online. Use a parents addresss?

[bompey]

I think you’d better check Lindsell Train performance before parting with any cash. Better to look at Vangard range.

[2 GKC]

elanfan said:

Open a Junior ISA with Hargreaves Lansdown. Put half in Lindsell Train sit back and watch it grow. Can all be done online. Use a parents addresss?

And the other half?

[The_Doc]

Rolex

Who doesn't want a £30k Rolex for their 18th birthday

(projected value)

[Mr Whippy]

Bitcoin.

Would you pay cap gains if you liquidated into GBP in the UK, having bought it in another country?

Hmmm.


Honestly right now high interest cash is probably best until you’re back in the UK, then get it in a SS ISA once all this pandemic stuff is clearing up.

[OscarJ]

Thanks guys. I think that I am unable to open a HL S&S ISA due to being overseas and a non-UK tax payer/resident.

[Zstar]

Hi Oscar,

First of all, congratulations!

I’m also in a similar situation. I have a lot of GBP through inheritance but am non UK resident, and have an 11 month old son that I want to start an investment scheme for to pay for his education/ give him a leg up when he starts adult life.

As you know, you can’t do a JISA. In your case, I’d be tempted to set up an account in your own name with either a broker like Interactive Brokers and invest in some ETFs, or talk to Julian/Nik at IM. In the case of the latter, please think about other UK tax events that you may experience as this could have tax implications as you can’t open the account in your child’s name. What they can do is switch your GIA to a JISA when you move back.