CTFs key to bridge inter-generational savings gap-experts

Laura Miller
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Child Trust Funds (CTFs) could solve Britain's debt problem if linked with inheritance tax (IHT) as a part of a wider, inter-generational asset strategy, experts say.

Analysts predict the state-subsidised savings vehicle, set up in April 2005 to ensure UK young adults start life with a capital asset, could be axed in the next round of spending cuts as the Government looks to curb its massive public debt. But economic and policy experts have defended the initiative, saying in time it will lower personal debt, improve financial literacy, and reduce the risk of future financial crises. It could even achieve more and cost less than the Government's £1bn tax-relief on ISAs, they say. London School of Economics (LSE) professor of social policy Julian Le ...

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