Designated accounts can be used for investments into your own personal account. You can use them for separating specific holdings from the rest of your portfolio, should you want to earmark that money for something in particular e.g. “House”, “Holiday” or “School fees”, etc.

Savings may be liable to tax – investors need to be aware that any capital gains made, above the annual allowance, will be subject to Capital Gains Tax (CGT) at the investor’s own rate and any income earned over £100 per year will be added to their own tax position. However, the £100 rule does not apply for grandparents and family friends, who may give as much as they like without income earned being added to their own tax position.