Not sure if this post is in the correct section so apologies in advance if its not
Both my children have £20k in a deposit account earning nothing much
I have around £80k of my own invested in shares and average around 10% profit a year on this ie £8K
Can I use my children funds and increase this stake to £120k and then any profit be put back to my children in the relevant percentage so that it is not taxed as my income
My stake £80k
Child 1£20k
Child 2£20k
Total £120k
at 10% profit =£12k
Split
My profit liable to tax - £8k
Child 1 income£2k
Child 2 income£2k
Do I need a trust of some sort to do this and will they have to pay tax
I know I could set up a separate trading account in each of their names but then I have to pay per trade and if buying the same share, this will increase my costs