Junior ISAs
Individual Savings Accounts for children or Junior ISAs were introduced in November 2011 replacing Child Trust Funds.
Give your child a head start in life
A child cannot have a Junior ISA as well as a Child Trust Fund account, however, a Junior ISA can be opened and the trust fund transferred into it.
There are two types of Junior ISA, a Cash Junior ISA and a Stocks & Shares Junior ISA and a child can have one or both types at any one time but the total annual amount which can be paid into either or both combined cannot exceed the Junior ISA Allowance.
Anyone can put money into the account (providing the annual limit is not exceeded) but only the child can take it out and only then when they are 18. If they choose not to take it out or invest it in a different type of account then the Junior ISA will automatically become an adult ISA.
ISA Investors do not pay any personal tax on income or gains, but ISAs may pay unrecoverable tax on income from stocks and shares received by the ISA managers.
Tax treatment varies according to individual circumstances and is subject to change.
Stocks and Shares ISAs invest in Corporate bonds; stocks and shares and other assets that fluctuate in value.
Frequently asked questions
- Who does the investment belong to?
The investment belongs to the child, however, it is managed by parents or guardians until the child turns 18.
- Does the parent or guardian have to give up responsibility at 18?
Yes. The child becomes the owner and can access the money themselves at 18. If you wanted an investment with more control over when the child can access it, please contact us to discuss other options.
- What is the Junior ISA Allowance for this tax year (2023/2024)?
The maximum amount that can be invested into a Junior ISA is £9,000 per annum (2023/24).
