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ISAs

Junior ISAs

JISAs allow you to build a portfolio of investments within a tax-efficient account that is ‘ring-fenced’ from the rest of the child’s other financial affairs.

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With a Charles Stanley Junior ISA you may invest in a range of investments, thereby achieving diversification of the underlying investments within the portfolio. Our initial minimum subscription level is £500 and anyone can top up the account up to the annual limit.

INVESTING IN A JUNIOR ISA

A Junior ISA (JISA) is a type of Individual Savings Account (ISA) for eligible children, where instructions are given by a person with parental responsibility for the child, known as the Registered Contact. Any child aged between 1 day and 17 years 364 days, who is resident in the UK is eligible. A change from the original rules comes into effect from April 2015 to enable Child Trust Funds (CTF) to be transferred in full to a JISA. It is not permitted to have both a CTF and a JISA, however.
Anyone with parental responsibility for an eligible child may open a JISA for that child, or eligible children over the age of 16 may open one for themselves. JISAs allow you to build a portfolio of investments within a tax-efficient account that is ‘ring-fenced’ from the rest of the child’s other financial affairs. You need not give HM Revenue & Customs any details whatsoever about these investments.

There are two types of JISA: a Stocks and Shares JISA and a Cash JISA. These can hold investments or cash deposits, up to the maximum financial year subscription limits for the type of JISA, which are currently:

A child may only hold one of each type of JISA. In a change from the original rules, from April 2015 Child Trust Funds (CTF) may be transferred to a JISA. A child may hold either a CTF or one of each type of JISA.

Subscriptions into a JISA are deemed a gift to the child and therefore cannot be repaid to the person subscribing. No funds may be withdrawn from the account, until the child reaches age 18, unless the child dies or becomes terminally ill.

A Stocks and Shares JISA is one in which investments may be bought, sold and held in a tax-efficient way. As with adult ISAs, there is no tax payable on capital gains on investments held within the JISA, nor is there any additional income tax due on income received.

JISAs allow families to save more for their children than they otherwise could. The main advantages of JISAs are the tax advantages and their ease of use.

There is no minimum age limit for holding a JISA and contributions can be made by anyone at any time, up to the annual subscription limit.

The Charles Stanley Junior ISA offers convenience, together with attractive low-cost charges.

Once the account is set up and in credit, you can buy investments and if you sell them at a profit there will be no Capital Gains Tax liability (note that, conversely, you cannot take advantage of capital losses either). You can keep subscribing up to the statutory limit every year to build up the tax efficient portfolio.

The Registered Contact will be the sole person authorised to provide instructions to Charles Stanley concerning investments and the administration of the JISA. The Registered Contact will be the person with parental responsibility for the child, though a child who is 16 or older may elect to become the Registered Contact instead.

The investments remain in the child’s beneficial ownership, although they cannot be registered directly in the child’s own name. This means that neither the child nor the Registered Contact has any direct contact with the management firms whose funds are held.

You can transfer all of either a Stocks and Shares JISA or a Child Trust Fund to a Charles Stanley JISA. Full or partial transfers from a Cash JISA can be made too, as long as after the transfer process the child has only one JISA of each type. There may be some factors, such as transferring the whole of the current year’s subscription, that are also relevant. Please discuss your requirements with both providers before making any JISA or Child Trust Fund transfers.

TYPE OF JISA 2015/16 ANNUAL SUBSCRIPTION  LIMIT
Stocks & Shares £4,080
Cash £4,080
Total must not exceed  
annual allowance of £4,080

Investments can fall in value and you should always seek professional advice regarding the suitability of Junior ISAs and investments if you are in any doubt.

 

020 7149 6437

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