Expert calls for child Isas as part of reform plans

A fair and transparent tax efficient environment is needed for people to invest in children's savings, it has been claimed.

Commenting after the government announced plans to scrap the child trust fund, George Ladds, head of investment and pension research at Fair Investment Company, said Isas can be used to provide this facility.

"It also moves us away from old-fashioned investments and into the twenty first century," he claimed.

"For me it seems sensible to set an Isa limit for children, perhaps £3,600 to tie it in line with pensions."

Mr Ladds said parents and grandparents would then have a choice of where and how they invest their money for the long-term benefit of their children or grandchildren.

According to the Fair Investment Company, the only tax-exempt savings plans for children at present are run by friendly societies.

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2010-06-04 13:22:43 © Moneyextra.com