Jun 20 2007
Nationwide Building Society has called on the soon-to-be prime minister Gordon Brown to establish fairer tax systems for those people who are aiming to save money for their children's financial futures.
The financial service provider notes that there are currently around nine million young Britons who are not old enough to open an individual savings account but who have passed the age at which a child trust fund (CTF) can be set up in their name.
And any savings set aside for these children are liable to an increased level of tax, a situation which Nationwide claims has the effect of penalising some people looking to give their children a sound financial footing.
Stuart Bernau, executive director at Nationwide, said: "Gordon Brown, the chancellor, introduced CTFs and raised the thresholds of stamp duty - but we think he can do much more as prime minister.
"We call upon him to take a stand and make significant changes to show that the nation's new prime minister is committed to making a difference."
A CTF account is opened for every child born after September 2002 and any investments made are only accessible to the specified individual when he or she is 18 years old.
