Junior ISA

Junior ISA

Didn't find your answer?

Anybody looked in detail of provisions of Junior Isa due to kick in on 1st November. Will it reduce IHT  for the adult providing the money.Thinking of grandparents.

I am meeting an elderly friend later and I know that she will want to know the inns and outs and so far all I can find is friendly societies selling their wares.

Many thanks

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By jbayman
11th Oct 2011 23:27

Junior ISA

You can pay in up to £3600 pa which as far as I can see will be a PET over and above any unused annual £3,000 exemption. Depending on the donor's situation it could also be covered by gifts out of normal expenditure.

It operates in a similar way to a normal ISA with the same tax breaks. The child can hold both a cash and stocks and shares ISA at the same timethrough different providers if required, however the capital cannot be accesed until the child is 18, although they can invest directly and manage their investmnent from 16.

My understanding there is no tax back onto the parent for interest over £100

It is open to any child who does not already have a CTF, which ended my interest as my grandson already has one. 

I'd give it a Google - there are a few providers out there hawking their wares. 

 

 

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