Wednesday 21 Sep 2011 @ 07:01
Directgov
Directgov
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Junior ISAs to launch on 1 November
Tax-free children's savings accounts, known as 'Junior ISAs', will be available from 1 November 2011. The new accounts will offer parents a tax-free way to save for their children's future.
What is a Junior ISA?
The Junior ISA is a tax-free savings account for children. However, unlike the Child Trust Fund account (which has been closed to children born on or after 3 January 2011), the government will not make any payments into the new accounts.
The key features of the Junior ISA are:
- children living in the UK who do not have a Child Trust Fund account will be able to have a Junior ISA
- people will be able to put money into a cash account or ‘stocks and shares’ account
- each child will be able to have one cash and one ‘stocks and shares’ Junior ISA at any one time
- there will be a total yearly limit of £3,600 for all payments into these accounts
- accounts will become ISAs when the child is 18
As with Child Trust Funds, the following will apply to Junior ISAs:
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the accounts will belong to the child and they are not able to get the money out until they are 18
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the child can become responsible for the account when they are 16
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any money the accounts make will be tax free
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a range of banks, building societies, credit unions, friendly societies and stock brokers will offer Junior ISA accounts
When will Junior ISAs be available?
The first Junior ISA accounts will be available on 1 November 2011.
Further information will be published when the accounts are launched.
