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27th July 2011
Today the government finally announced it’s official final regulations for the soon to be launched Junior ISA which are as follows:
Children who missed out on the child trust fund who where born on or after the 3rd January 2011 or any child under 18 years of age who was born before September 2002 will be eligible for a Junior ISA.
The Junior ISA will officially be available on the 1st November 2011.
The initial Junior ISA Allowance (Junior ISA Limit) is set at £3600 per year.
Anyone can contribute towards a Childrens ISA including grandparents, family members and friends.
The Junior ISA is tax efficient, just like an adult ISA.
The funds are locked inside the account and can only be accessed by the child when they reach 18 years of age.
Once the child reaches 16 years of age they can manage their Junior ISA(s) but cannot make any withdraws until they are 18 years old.
Parents cannot withdraw from the account as it is designed to help with the child’s financial future.
A Junior ISA Account can only be opened by the child’s parent(s) or an adult with legal parental responsibility of the child.
Once the child reaches 18 years of age the Junior ISA will automatically change to a regular adult ISA and the child can access their funds
Each eligible child will be able to hold both a cash junior isa and an investment junior isa (stocks and shares junior isa) but the total combined investment allowance is £3600 per year. Both accounts do not have to be with the same provider and you are permitted to transfer your Junior ISA to a different provider should you wish.
The government will not contribute towards a Junior ISA like they did with the Child Trust Fund.
Any child with a Child Trust Fund will not currently be able to transfer it to a Junior ISA.
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