Tax planning needed to ease student debt

As students face even higher financial demands as they go off to university, thanks to top-up fees, many will look to parents and grandparents for help with costs through allowances, trusts or in some cases even buying a house. But KPMG says if they are considering doing this, parents and grandparents should look at the tax consequences and make sure they plan ahead so their financial help isn’t restricted by Inheritance Tax (IHT) if they die within the next seven years. The firm says a monthly allowance paid by standing order should normally be exempt from IHT because it will either ...