Share issues to grandparent for benefit of grandchild?

Share issues to grandparent for benefit of...

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I remember it used to be possible for a new company to issue shares to grandparents with the informal understanding that the grandparents would pay for the grandchildren's school fees. A further refinement was the transfer of the shares into trust for the grandchild, the trust paying the school fees.

I've not done one of these for a few years - is this still possible at all or has it been stopped with the recent changes in trusts and/or s660.

As far as I can tell, the company involved will be more than a personal service company, but the initial share capital will be fairly small - probably the typical 100 shares, with most to director and some to her parents.

Assuming it is still possible to do this, I presume the major obstacle will be S660 or am I completely barking up the wrong tree.

I'm not asking for chapter and verse - I'm more than happy to do the research and get specialists/consultants involved - I'd just like to know whether there is hope or not.

Many thanks.
Ken Howard

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