WITH costs rising every year, more parents are being called upon to assist their children as they enter their adult lives.

Many are finding that careful planning when their children are young can help reduce the burden.

If you pay income to children from existing sources, typically by making a gift of income-producing assets, you need to be aware that any income paid to a minor child which originates from a parental gift remains taxable on the parent when it exceeds £100.

You can save up to £4,000 a year for your child tax-free until they reach 18 using a Junior ISA account or saving funds in an existing Child Trust Fund.

Regular ISAs, now known as NISAs, are available from age 16. You can gift children up to £15,000 per annum from age 18, for them to save tax free.

Of course, these routes mean that the children have full entitlement to the funds at age 18. A trust could be used to allow some control over the funds remaining at age 18. For advice on the tax implications of saving for your child’s future, please contact your local Baker Tilly adviser Jo Gibbons on 01256 486800 or jo.gibbons@bakertilly.co.uk.