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JUNIOR ISA

Everything you need to know about ISAs

What is a Junior ISA?

Junior [cash] ISAs are saving accounts for children that are tax-free. You can also set up a junior [stocks and shares] ISA account. The cash that is invested into the ISA will not require you to pay tax on capital growth or dividend.


Who qualifies for a Junior ISA?

Junior ISAs are available to children under 18 years old. The ISA will have to be set up by parents or guardians who have parental responsibility but the money in the account belongs to the child. The child will gain access and control of the account when they are 16 years old, but cannot withdraw the money until they are 18 years old.

Children (who have ISAs set up for them) will need to be living in the UK. If your child lives outside the UK, then you can still set up a junior ISA if you are in the UK’s armed forces, diplomatic service or overseas civil service or they depend on you for care.

It should be noted that the amount of money that can be paid into the 2017-18 tax year, is £4,128.


How to setup a Junior ISA?

To set up a junior ISA you will need to choose the type of junior ISA you want to set up (cash or stocks and shares), contact the account provider you want to set up the account through, and request an application form. Banks, building societies, credit unions, and stockbrokers offer both types of junior ISAs.

A child cannot have both a junior ISA and a trust fund but money from trust funds can be transferred to an ISA account.

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