{"id":7063044,"date":"2026-09-21T11:45:51","date_gmt":"2026-09-21T11:45:51","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/how-grandparents-can-help-fund-private-education-accountants-tax-business-advisers\/"},"modified":"2026-09-21T11:45:51","modified_gmt":"2026-09-21T11:45:51","slug":"how-grandparents-can-help-fund-private-education-accountants-tax-business-advisers","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7063044","title":{"rendered":"How grandparents can help fund private education &#8211; Accountants | Tax &#038; Business Advisers"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n<section class=\"hero-block ratio-7-2\" style=\"--desktop-bg: url('https:\/\/pillowmay.co.uk\/wp-content\/uploads\/2026\/06\/PXL_20210607_155921320-scaled-aspect-ratio-7-2-scaled.jpg'); --mobile-bg: url('https:\/\/pillowmay.co.uk\/wp-content\/uploads\/2026\/06\/PXL_20210607_155921320-scaled-aspect-ratio-1-1-scaled.jpg');\">\n<\/section>\n<h3 class=\"pm-heading m-b-40\">\n<\/h3>\n<h2 class=\"wp-block-heading\">How grandparents can help fund private education<\/h2>\n<p class=\"wp-block-paragraph\">Following the introduction of VAT on independent school tuition, recent research suggests that privately educating a child between the ages of five and 18 will cost on average \u00a3350,000 (and that is without boarding). Faced with that expense, it\u2019s hardly surprising that more than a third of parents have considered taking their children out of private education because of the cost.<\/p>\n<p class=\"wp-block-paragraph\">Any offer of help from grandparents will therefore be very welcome and making financial provision now, rather than leaving something in your Will, may be an effective way for grandparents to contribute towards their grandchildren\u2019s education whilst securing inheritance tax (IHT) savings.<\/p>\n<p class=\"wp-block-paragraph\"><strong>Lifetime gifting by grandparents<\/strong><\/p>\n<p class=\"wp-block-paragraph\">A simple outright gift from a grandparent to pay school fees may become subject to IHT if the grandparent fails to survive seven years from the date of the gift. However, there are two exemptions worth bearing in mind.<\/p>\n<p class=\"wp-block-paragraph\">First, lifetime gifts that do not attract another exemption from IHT may still be exempt if they do not total more than \u00a33,000 in a given tax year. This gives two sets of grandparents the potential to gift \u00a312,000 per annum free of IHT.<\/p>\n<p class=\"wp-block-paragraph\">Second, lifetime gifts out of a grandparent\u2019s surplus income may immediately be free of IHT if certain conditions are satisfied (for instance, the gifts form part of the grandparent\u2019s normal expenditure and they are left with sufficient income to maintain their usual standard of living). Notably, there is no 7-year run-off period and there is no limit on the exemption.<\/p>\n<p class=\"wp-block-paragraph\"><strong>What is the best way to make a gift?<\/strong><\/p>\n<p class=\"wp-block-paragraph\">A grandparent may choose to make such gifts to the child\u2019s parents. Gifts could also be made into existing or newly established trusts for the benefit of the grandchildren and, so long as the above exemptions are utilised, future exposure to IHT on the part of the grandparents can be mitigated.<\/p>\n<p class=\"wp-block-paragraph\"><strong>Do you own shares?<\/strong><\/p>\n<p class=\"wp-block-paragraph\">If you hold shares as a grandparent, you may also consider using them to help fund your grandchildren\u2019s education. Suppose you own shares in a family business and don\u2019t need the level of dividend income you receive: gifting those shares into a trust can be a tax\u2011efficient way to pay school fees without passing control of the family business directly to the grandchildren. If parents give shares to their children, any dividend income is taxed at the parents\u2019 rate rather than the children\u2019s. This doesn\u2019t apply when the gift comes from grandparents.<\/p>\n<p class=\"wp-block-paragraph\">Moreover, if your shares qualify for <strong>Business Property Relief<\/strong> (and, following changes effective from April 2026, are worth less than \u00a32.5 million) there may be no immediate IHT charge on making the gift into trust, and any capital gains could be held over. The tax implications are complex, which makes taking expert advice essential, but gifting shares into trust could be a tax efficient way for a grandparent to contribute to their grandchildren\u2019s education.<\/p>\n<p class=\"wp-block-paragraph\">For more advice on funding private education, contact Anna\u00a0Wensley\u00a0Stock at Wansbroughs LLP (wealth@wansbroughs.com).<\/p>\n<p class=\"wp-block-paragraph\"><em>Guest blog by Anna\u00a0Wensley\u00a0Stock from Wansbroughs LLP.<\/em><\/p>\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n<p class=\"wp-block-paragraph\">\u00a0<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 How grandparents can help fund private education Following the introduction of VAT on independent school tuition, recent research suggests that privately educating a child between the ages of five and 18 will cost on average \u00a3350,000 (and that is without boarding). Faced with that expense, it\u2019s hardly surprising that more than a third of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7063045,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11759],"tags":[12717,15994,907,7415,11460,28125,11448,7356],"dealstore":[],"offerexpiration":[],"class_list":["post-7063044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","tag-accountants","tag-advisers","tag-business","tag-education","tag-fund","tag-grandparents","tag-private","tag-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How grandparents can help fund private education - Accountants | Tax &amp; Business Advisers - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=7063044\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How grandparents can help fund private education - Accountants | Tax &amp; Business Advisers - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"\u00a0 How grandparents can help fund private education Following the introduction of VAT on independent school tuition, recent research suggests that privately educating a child between the ages of five and 18 will cost on average \u00a3350,000 (and that is without boarding). Faced with that expense, it\u2019s hardly surprising that more than a third of [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fivemor.com\/?p=7063044\" \/>\n<meta property=\"og:site_name\" content=\"Som2ny Network\" \/>\n<meta property=\"article:published_time\" content=\"2026-09-21T11:45:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/09\/PXL_20210607_155921320-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1920\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/fivemor.com\/?p=7063044#article\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/?p=7063044\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\"},\"headline\":\"How grandparents can help fund private education &#8211; 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