Junior ISAs

ISAs for the younger generation are available in the form of a Junior Individual Savings Account (JISA).They are a great way to save for children, and are easy to set up and use.

One great reason to invest in a JISA is that any potential growth is free from further liability to income and capital gains tax.

Inheritance Tax Planning

There are some rules regarding JISAs:

  • The parent or guardian of the child must set up the JISA. Once this has been done, anybody can contribute to it
  • The maximum amount that can be accumulated in the 2022-2023 tax year is £9,000
  • Flexible investments can be made, either through regular contributions or as a lump sum
  • The money can only be withdrawn by the account holder upon turning 18 years old
  • If the money still remains in the child’s account after the age of 18, the account will automatically transfer to an ISA
  • A change to the law now allows parents to transfer Child Trust Funds to 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.