JISAs (Junior Individual Savings Accounts) are a simple, flexible and tax-efficient way of saving for the younger generation, helping you to invest for a better future for your child or grandchild.
Child savings accounts also provide tax-free interest, however if a parent gives money to a child that generates more than £100 a year in interest, tax is paid at the parent’s marginal rate. A Junior ISA, on the other hand, has no such restrictions.
The account must be opened by the child’s parent or guardian, although anyone can contribute
Up to £4,260 can be invested per child for the 2018/19 tax year
There is no personal taxation on any capital growth or income received
Investments are flexible, you can invest a lump sum or make regular contributions
Only the child can withdraw the money, and only after he or she is 18
The JISA account automatically becomes an ISA from the age of 18 if the money is not taken, with the child as the plan owner
The law has recently changed to allow parents to transfer Child Trust Fund accounts into Junior ISAs
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The favourable tax treatment given to Junior ISA is subject to changes in legislation and may not continue in the future.