Junior ISA

Junior ISA

Junior ISAs (Individual Savings Accounts) were made available from 1 November 2011,
following the end of Child Trust Fund (CTF) eligibility from January 2011. The Treasury says “that Junior ISAs will ensure that all parents have a clear and simple way to save for their child’s future.” They will initially allow parents, family members and friends to make tax-efficient savings of up to £3,600 annually per child.

Junior ISAs will have the following key features:

• All UK resident children under the age of 18 who do not have a CTF will be eligible for  Junior ISAs;

• Any income or gains will be tax-free;

• Both cash and stocks and shares Junior ISAs will be available. Children will be able to hold up to one cash and one stocks and shares Junior ISA at a time (two accounts in total);

• There will be an overarching contribution limit of £3,600 per year which will be indexed by
CPI from 6 April 2013 onwards;

• Accounts will be owned by the child and funds will be locked in until the child turns 18;

• Children will have the right to manage their accounts from age 16;

•Junior ISA accounts will by default become adult ISAs on maturity.