Children As Share Owners

[dancecaller]

Is it possible to buy shares for children, e.g. the Lloyds bank shares, and arrange to have the dividends paid as more shares.
With the idea that they will be kept as a long term investment until the 3 & 6 yr olds are 16 or 18.

[Buenchico]

I can't see how a 'dividend in the form of shares' scheme could work as such a scheme would end up increasing the number of shares held by investors, thus potentially lowering the value of each share.

This might be interest to you:
http://www.thisismoney.co.uk/money/investing/article-1587994/Junior-Isa-Child-Trust-Fund-How-save-invest-children.html

[Peter Pedant]

anthing is possible baby but it depends on what the tax man says the tax position is ( not therefore if you can do it or not )

I thought the kids would automatically ( implied trust ) hold them as beneficiaries with the trustees ( imposed) on the parents

and from the tax position then the parents would be charged as tho it were their own

anyway here is contractor doctor's opinion - it looks as tho this idea has been floated before

http://www.contractorcalculator.co.uk/contractor_children_shares_company_tax.aspx

and there is no tax advantage

accumulating shares rather than taking a divi attracts a tax charge innit ?
I always take the money myself so I am not sure

so my conclusion is
good idea but doesnt give you much advantage

[ubasses]

A child under 18 cannot hold shares in their own name. You might find the following link helpful.

ttps://www.theaic.co.uk/sites/default/files/uploads/files/AICChildrensFactsheet.pdf

[ubasses]

As usual my first attempt did not work

https://www.theaic.co.uk/sites/default/files/uploads/files/AICChildrensFactsheet.pdf