What is a Junior ISA?
A Junior ISA (JISA) is a tax efficient savings and investments account that allows parents, other family members and friends to contribute and invest for a child. If you intend to make sufficient contributions and investments, which are likely to provide tax benefits, or you wish to make your own choices about where monies are invested, then a JISA might be the right investment for your child.
Beaufort currently offers Junior ISA accounts through our telephone-based services on an advisory or execution-only basis.
Who is eligible?
All children resident in the UK are eligible for a Junior ISA
However, children born between 1 September 2002 and 2 January 2011 will need to transfer their Child Trust Fund to the Junior ISA (or have previously transferred their Child Trust Fund to a Junior ISA) in order to open the account.
Benefits of a Junior ISA
- The annual contribution limit has been held at £4,080 for the 2016/17 tax year;
- A tax efficient lump sum at the start of adult life, which can be rolled into an ISA;
- Ability to create a diverse portfolio from shares to fixed interest investments or even commodities;
- A tax efficient account like an adult ISA; no further tax liability on the interest or dividends received;
- Any profits from investments are free of Capital Gains Tax;
- It is possible to select investments that pay interest and income gross.
- Investments and income arising from them can fall in value and the child may lose some or all of the amount that has been invested;
- Funds cannot be returned to the contributor(s) once paid in;
- You cannot restrict what the child does with the fund once they have access to their investments;
- The commissions and other charges paid on transactions and the annual administration charge will affect overall performance;
- Tax treatment depends on the specific circumstances of each individual and may be subject to change in the future.
To apply for a new Junior ISA account click here
To transfer an existing Junior ISA account to Beaufort click here
There are no annual management fees for holding a Beaufort Advisory JISA and our standard dealing commissions for this account. Click here to download our Advisory Rate Card.
Click here to see full Risk Warnings
Please read our Terms & Conditions for JISAs