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Junior ISA

It’s natural to want to provide for your child financially. Here’s how we can help.

Junior ISAs at a glance

  • Invest up to £4,260 for the 2018/2019 tax year
  • Child can access their savings from age 18
  • No Capital Gains tax
  • No Income tax

IMPORTANT Read the ISA Key Facts and our Charges Guide for all the details and before you make up your mind if our Junior ISA is right for you.

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Important information

Please remember the value of your investments and any income from them can go down as well as up and you may get back less than the amount you originally invested.

All investments carry an element of risk which may differ significantly. If you are unsure as to the suitability of any particular investment or product, you should seek professional financial advice.

Laws and tax rules may change in the future without notice. The information here is our understanding in April 2018. This information takes no account of your personal circumstances which may have an impact on tax treatment.


Why ATS for your Junior ISA?

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Is a Junior ISA right for me?

A Junior ISA is a tax efficient savings vehicle that allows you to save up to £4,260 for the 2018/19 tax year. The account is for the benefit of a child and is held in the name of the child, with all cash and investments belonging to them, however all investment decisions or instructions are given by a “registered contact” – typically the parent or adult who has parental responsibilities.

In normal circumstances this money cannot be withdrawn until the child is 18 (withdrawals are permitted in the event of ill health (terminal illness) or death). There is no capital gains tax liability within a Junior ISA and there is no further tax to pay on dividends. There is also no need to declare any gains or income received in the Junior ISA to HMRC.

If you’re happy for your child to be able to access their investments from age 18, making all their own decisions from then about how and when to take money out of their Account, then our Junior ISA may be for you.

A head start in life

Junior ISAs can be a great way to give your child a head start as they become a young adult. Their ISA could help buy a car, pay university tuition fees, put down a deposit on property. Or with anything else they need.


Please read our ISA Key Facts before deciding whether a Junior ISA is right for you and your child.

Download Key Facts

Three easy steps to open a Junior ISA

  1. Decide how much you want to invest.
  2. Go to the Investing Hub to research your investment choices.
  3. Apply online now.

Time to transfer a Child Trust Fund (CTF)?

Most children born between 1 September 2002 and 3 January 2011 qualified for a CTF. The government put some money in and anyone could top this up on the child’s behalf.

Junior ISAs replaced CTFs from January 2011 and a child can only have one or the other. The good news is you can now transfer a CTF to a Junior ISA.

Why does this matter? No new CTFs can be opened so the firms that provide them may not have the incentive they once did to keep them competitive.

A few things to think about if your child has a CTF:

  • How do the charges compare to our Junior ISA?
  • Are you happy with the choice of investments on offer?
  • What about the service? Can you switch investments and check the value of the account online for example?

Moving to a Junior ISA is easy

If you’re the registered contact for the CTF, just ask us and we’ll arrange it. The transfer value of the CTF won’t count towards your £4,260 investment limit either.

Your CTF provider might charge you for leaving. We won’t charge you for transferring to us.

transfer in form

Junior ISA FAQs

Who can have one?

A Junior ISA can be opened for any child under the age of 18 although if a child already has a Child Trust Fund it would have to be transferred to the Junior ISA once this has been opened.

What’s the minimum payment?

£50 (either as a one off or regular payment).

What’s the maximum payment?

£4,260 2018/19 tax year and due to rise in line with the Consumer Prices Index each year in future.

Who can pay in?

A UK resident parent or guardian aged 16 or over must open a Junior ISA, but after that anyone can pay in.

Who do the investments belong to?

The child. They can control the investments from age 16 but can’t access them until they reach the age of 18. At that point the Junior ISA becomes an adult ISA in their name. The only way to get money out of a Junior ISA before 18 is if the child is terminally ill or dies.

What are the tax advantages?

There is no tax to pay on income or investment growth inside a Junior ISA. (Apart from a tax of 10% on any dividend payments on UK shares. This is taken off before the dividend is paid and can’t be reclaimed.)

What are the charges?

£3.33 a month to hold a Junior ISA Account with us. You will also pay charges on the investments you hold and for any transactions you ask us to carry out. The charge changes to £10.00 a month when the child reaches 18 and it converts to a regular ISA Account. Read our Charges Guide for the details.

Anything else I should know?

From the age of 16 a child could open their own Junior ISA, provided they were resident in the UK. A child can only have one Junior ISA, but this can be transferred between different providers if you like.

Alliance Trust Savings Limited is a subsidiary of Alliance Trust PLC and is registered in Scotland No. SC 98767, registered office, PO Box 164, 8 West Marketgait, Dundee DD1 9YP; is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 116115. Alliance Trust Savings gives no financial or investment advice.