INVEST FOR A CHILD IN A JUNIOR ISA (JISA)
Please note that, at this time, Baillie Gifford does not offer a JISA.
Junior ISAs (JISAs) have been available since 1 November 2011 as the successor to Child Trust Funds (CTFs). Specifically designed to hold investments for children, they are a type of ISA. They can be opened by anyone with parental responsibility for the child (the registered contact) and will be held in the child's name.
Up to £3,600 can be subscribed to a JISA in the 2012/13 tax year. Like adult ISAs there are two types of account: Cash JISAs and Stocks and Shares JISAs.
Withdrawals cannot be made from a JISA and they should be regarded as a long-term investment. It should also be remembered that stock market values can fluctuate and tax rates and reliefs may change at any time.
On the child's 18th birthday, legal title to all investments within their account will be transferred to them. The account ceases to be a Junior ISA, but any investments roll over into an adult ISA (or similar tax-efficient vehicle).
A child is eligible for a JISA if:
- They are under the age of 18,
- They meet the residency rules,
- They were born on or after 3 January 2011, or they do not have a CTF (i.e. born before 1 September 2002)