Junior ISAs
Junior Individual Savings Accounts (ISAs) are a long-term, tax-free savings account for children. In the 2021-2022 tax year, the savings limit for Junior ISAs is £9,000. Junior ISAs are available for any children, living in the UK who are aged under 18.
Junior ISAs can be invested in cash or stock and shares. There is no income tax or capital gains tax to pay on the investments. They are managed by the child’s parent however the money belongs to the child. Once the child reaches 16 they can take control of their investment but cannot withdraw funds until they are 18.
You can’t have a Junior ISA as well as a Child Trust Fund.
WE RECOMMEND THAT YOU SEEK ADVICE WHEN TAKING OUT A STOCKS & SHARES JUNIOR ISA AND REMEMBER THAT THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN AS WELL AS UP AND YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
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