UK doctors can use a Junior ISA to build tax-free wealth for their child. Invest £180,000 from birth over 20 years and it grows to roughly £500,000, with all capital gains completely tax-free inside the ISA wrapper.
Assuming you started this when your child was born and they're 20 years, after 20 years you've contributed £180,000. Whether it's coming from you or from your partner, from the child, or from grandparents, let's say it's gone from £180k to £500k. So now basically there's a capital gains there. Normally you have to pay capital gains, 24% if you're a higher rate taxpayer, 18%. But in this case, your child pays nothing because it's inside an ISA. Right.
