Key facts
- A 158% rise in new Junior Self Invested Personal Pensions was recorded in the first month of the new tax year.
- This increase is compared to the same period in the previous year.
- Wealthy parents are using these pensions to reduce inheritance tax bills.
Parents looking to minimize inheritance tax are increasingly utilizing pension schemes for their children. Junior Self Invested Personal Pensions (SIPPs) offer a tax-efficient way to save for a child's future while potentially reducing the taxable estate. This strategy has seen a significant uptake as tax rules and economic conditions evolve.