All UK resident children who are under 18 and born before September 2002 or after 3 January 2011 will be eligible for Junior ISAs, in other words, every child in the UK who doesn't already have a CTF.
Any income or gains will be tax-free and both Cash and Stocks & Shares Junior ISAs will be available, just as they are for the equivalent adult ISAs. Children will be able to hold up to one Cash and one Stocks & Shares Junior ISA at a time (two accounts in total).
There will be an overarching contribution limit of £3,600 per year which will be indexed by CPI from 6 April 2013 onwards. The CTF subscription limit is set to rise to match this so existing account holders won't miss out.
Accounts will be owned by the child and funds will be locked in until the child turns 18, as is the case with CTFs
Children will have the right to manage their accounts from age 16 and Junior ISA accounts will by default become adult ISAs on maturity
Here at Reyker Securities we will be offering clients, who fully subscribe to a Junior ISA either by lump sum or monthly direct debit, the opportunity to have their account managed on a discretionary basis by us for free with them only having to pay the annual management charge. To stay updated on this and other developments in Junior ISA news, sign up here.
For more information on our 4thekids CTF and Ethical CTF Discretionary Management Service please call our team on 020 7397 2580 who will be more than happy to assist you.
Christopher Hale
CTF Manager
