Junior ISA FAQs

The Junior ISA is a new tax-efficient savings account for children who missed out on a Child Trust Fund account.

Junior ISAs are aimed to provide parents with a simple and tax-efficient way to save for their child’s future.

Yes. Why not take a look at our stocks & shares Junior ISA. It’s designed with your child in mind and you can apply online. Junior ISA find out more.

All UK resident children (aged under 18) who do not have a CTF are eligible for a Junior ISA. This includes children who were born before the start of CTF eligibility, in September 2002. (Please note that our Junior ISA is not available for children already aged 16 and over).

Eligibility for the Junior ISA will also be backdated, to ensure no child born after the end of CTF eligibility (2 January 2011) will miss out on the chance to have one of the accounts.

The new Junior ISA has the following key features:

• All investment growth and returns are free of personal taxes
• The account is owned by the child and funds cannot be touched until the child becomes 18
• The parent manages the Junior ISA account – when the child reaches 16 they can choose to manage their own account if they wish
• The contribution limit is £3,600 in each tax year – this will be indexed yearly by reference to the Consumer Prices Index (CPI) from April 2013. This is the overall limit, but can be spread across both cash and stocks & shares Junior ISAs
• Anyone can contribute to a child’s Junior ISA account
• If the money is not withdrawn when the child reaches 18, the Junior ISA will automatically roll over into an adult ISA
• There are no Government contributions into the account

Both cash, and stocks & shares Junior ISAs are available.

Children can hold up to one cash and one stocks & shares Junior ISA at a time (two accounts in total) in each tax year, provided that in total the amount paid in for that year does not exceed £3,600.

Please note that we offer a stocks & shares Junior ISA only.

Each Junior ISA can have up to £3,600 added every tax year. A tax year runs from 6th April to 5th April.

From April 2013, this amount will be updated each year in line with the Consumer Prices Index (CPI).

Yes – any friend or family member can contribute to your child’s Junior ISA. Currently up to £3,600 every tax year may be added in total – and all growth in the account will be free from personal taxes.

From April 2013, this amount will be updated each year in line with the Consumer Prices Index (CPI).

The main differences between Junior ISAs and Child Trust Funds are:

• Unlike CTFs, there are no Government contributions into Junior ISAs
• Child Trust Fund contribution years run from the child’s birthday to their next birthday; whereas Junior ISA contribution limits apply to tax years (6 April to 5 April).

Child Trust Funds and Junior ISAs will remain separate types of accounts and it’s not possible to transfer CTFs into Junior ISAs or vice versa.

Existing Child Trust Funds will continue to run as normal. This means that:

• They will continue to benefit from tax-efficient investment
• Up to £3,600 a year overall can be contributed by family and friends. (For CTFs, the contribution year runs from one birthday to the next). From April 2013, this amount will be updated each year in line with the Consumer Prices Index (CPI) and will continue to be aligned with the Junior ISA limit.
• The CTF will continue in place until the child’s 18th birthday
• All the terms and conditions remain the same – except there are no more Government contributions (such as the Age 7 payment).

Yes, if your child was born after 2 January 2011 – although they won’t be entitled to a Child Trust Fund – they will be eligible for a Junior ISA.

Find out more about our Junior ISA.

Yes, being the only company to specialise solely in savings and investments for children we offer a stocks & shares Junior ISA which is designed to help your child get the best possible start in life.

Find out more about our Junior ISA.

Please note that we do not offer a cash Junior ISA.