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Junior Stocks & Shares ISA
What is a Junior ISA?
The Junior ISA is tax efficient, both for the child holding the
policy and their parents. Designed for adults to save and invest on
behalf of children.
TSCTRADE only offers the Junior Stocks and Shares ISA (JISA) and there is an
annual Administration Charge of £20 + VAT.
Key Information
- The initial Junior ISA allowance (limit) is set at £3,600 per annum from the
remainder of 2011/2012 tax year.
- 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.
- This allowance can be split between a Cash ISA and a Stocks
& Shares ISA.
- Anyone can contribute
towards a Junior ISA including parents, grandparents, family
members and friends.
- A parent or guardian can open a Junior ISA for an eligible
child.
- The account is held in the
child's name, but opened and managed by a parent or
guardian.
- Parents have the option to allow their child to manage the
Junior ISA from the age of 16; however the child cannot withdraw
any capital until age 18.
- No withdrawals are permitted
until the child reaches the adult age of 18 years and the child
then has full access to their capital. [except in cases of
terminal illness or death].
- The tax benefits are the same as an adult ISA - no capital
gains tax and no further tax on any income. [Tax rules can change
over time and the benefits to your child depend on their
individual circumstances.]
Who is eligible for a Junior ISA?
- All UK resident children (under 18 years of age) who were not
eligible for a Child Trust Fund (CTF) would be eligible for a
Junior ISA. This includes children born before the start of the
CTF in September 2002.
- Children born on or after 3 January 2011.
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