Frequently Asked Questions About The Junior ISA

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		FAQ’s

	Here we have many frequently asked questions regarding the ISA For Children. Please note that if your question is not answered here and you are at all unsure towards the suitability of a Junior ISA for your child then it is strongly recommended that you seek independent financial advice. Can Grandparents Contribute? Is it really tax free? Can parents access the funds? Can I open a Junior ISA through my Financial Advisor? Can my child have a Junior ISA? Can I transfer my Child Trust Fund into a Junior ISA Account? Can grandparents open a Junior ISA on behalf of their grandchild? *Can Grandparents Contribute?* Yes grandparents can pay into their grandchilds junior isa. In fact anyone can contribute towards a Child’s ISA including parents, friends, family members and grandparents. Please note that the total annual contribution must not exceed £3600 per tax year. *Is it really tax free?* Yes, any interest earned within the Junior ISA account will be free from both income tax and capital gains tax. *Can parents access the funds?* No, parents can not withdraw from the account. In fact, the funds are locked away inside the account and can only be withdrawn by the Child when they reach the age of 18.

Can I open a Junior ISA through my Financial Advisor?
Yes, many independent financial advisors will be offering the Junior ISA and will compare ISAs from many different providers.
Please note that they will be acting as a middle man and will quite possibly take an annual management fee out of the Junior ISA which could affect it’s performance when you consider how many years the child will hold the account.
It is now very easy for anyone to compare Junior ISAs themselves online via the internet and by applying directly to the provider, you may be able to achieve a better return on your investment.

Can my child have a Junior ISA?
Any child born on or after the 3rd of January 2011 and any child under the age of 18 who was born before September 2002 will be eligible for the Junior ISA.

Can I transfer my Child Trust Fund into a Junior ISA Account?
No, the government are currently not permitting the transfer of a CTF into a Children’s ISA.

Can grandparents open a Junior ISA on behalf of their grandchild?
That is dependent upon whether or not the grandparent has legal parental responsibility of the child.
Only the child’s parent(s) or person with legal parental responsibility of the child may open a Junior ISA for that child.