Produced by Tolley
  • 22 Mar 2022 09:51

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Junior ISAs
  • Giving investment advice
  • Who can invest in a junior ISA?
  • Registered contact
  • Interaction with other provisions
  • Interaction with cash ISAs
  • Interaction with settlement rules
  • Withdrawals from the junior ISA
  • Withdrawals prior to the child’s 18th birthday
  • Access to the funds at 18 years old
  • More...

Junior ISAs

Junior individual savings accounts (junior ISAs), introduced in November 2011, were designed to be an alternative to the child trust fund but without the Government contribution to the fund.

The main features of the junior ISA are that:

  1. it is available to a child under 18 who does not have a child trust fund account

  2. as with adult ISAs, there are two types of junior ISA accounts: (a) cash and (b) stocks and shares

  3. funds placed in the account(s) are owned by the child and are locked in until the child reaches 18 years of age

  4. the child is able to hold only one junior cash ISA account and one junior stocks and shares ISA account at any one time (although transfers between accounts are possible)

  5. all income and gains within the account(s) are tax-free and losses will not be allowable for tax purposes

  6. annual contributions are capped, with the junior ISA allowance for the tax years 2020/21 to 2022/23 being £9,000 per year

This guidance note considers junior ISAs. For adult ISAs, see the Individual savings accounts guidance note.

Giving investment advice

The usual health warning applies here: you cannot give investment advice unless you are authorised to do so by the Financial Conduct Authority. You can tell your client about tax efficient investments but you must not recommend any based on their circumstances.

See the Regulated investment advice guidance note.

Who can invest in a junior ISA?

A child is an eligible child for the purposes of the junior ISA, if they were:

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