Junior ISA

The Government introduced Junior Individual Savings Accounts (ISA) in order to provide an incentive for parents and grandparents to make investments for the benefit of children.

Children born on, or after, 3rd January 2011, Children (under 18) born on, or before, 31st August 2002 and Children born on, or between, 1st September 2002 and 2nd January 2011 who did not qualify for a Child Trust Fund are eligible for the Junior NISA.

This regime is destined to provide future funds which can be used after 18 years of age for the provision of university fees or the provision of a deposit for property purchase. Junior NISA’s are identical to the tax efficient investments available to adults although the limit is set at the lower limit of £9,000 per tax year per child.

The investments are free of Capital Gains Tax and Income Tax in the hands of the account holder and, due to the investment term of the investments, compound interest will be a great benefit.