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What is a Junior ISA?

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Junior ISAs are simple and tax free and any child resident in the UK who is not eligible for a Child Trust Fund (CTF - see below) can have up to one Junior Cash ISA and one Junior Stocks & Shares ISA.

Any child born before September 2003 and on or after after 3rd January 2011 is eligible.

Up to £3,600 can be invested in a child’s JISA(s) in total every year. Parents, grandparents, anyone with an interest in a child’s financial future can contribute to either account provided the total annual limit is not exceeded.

And the beauty is that there is no additional paper work. Tax forms do not need to be filled in for the child and the tax office does not need to be informed that a Junior ISA has been started.

And for those who do have CTFs, while the Government will no longer be making a contribution, they will function in the same way, albeit remaining separate.

At 16, the child assumes responsibility for the account, meaning that if they wish to transfer from one manager to another, it is within their power; and when the child reaches adulthood at 18, by default, the JISA turns into an ISA.


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