Inheritance Tax UK: How grandparents can gift an 'unlimited amount of excess income'
“A parent or guardian can open a Junior ISA for the child, which in most cases a grandparent can also pay into.
“In the ISA wrapper all interest earned is tax free. Any funds in a JISA will revert to the child once they reach 18, meaning it has the benefit of being more readily available to pay for things such as a first car or to help with university tuition fees.
“Grandparents with a longer term view may think about paying into a pension for their grandchild, potentially benefiting from many years of capital growth – but the child will not be able to access this until they reach 55.”
