The M&G Junior ISA
Junior ISAs (Junior Individual Savings Accounts) offer investors a straightforward way to save for a child's future and will be available to all UK resident children who do not have a CTF (Child Trust Fund) account.
How do Junior ISAs work?
- Up to £3,720 per tax year can be invested on a child’s behalf.
- You can invest by either regular payments or with a lump sum, at any time.
- Anyone can gift or contribute into an M&G Junior ISA (including the child for whom it is held) - making it a great alternative for Christmas or birthdays.
- The account has to be opened by a person with parental responsibility or legal guardianship.
- The money invested can only be redeemed by the child once they reach 18 years of age.
- Any returns the investment generates will be free from income and capital gains tax.
- Children living in the UK who do not have a Child Trust Fund account will qualify for a Junior ISA account.
- Junior ISAs have the flexibility to switch from cash to stocks and shares and back again, giving you greater control over your child’s investment.
- Investing in a Junior ISA will not affect your own annual ISA allowance of £11,520 and doesn’t need to be declared on your personal tax return.
- As the investment is inaccessible until the child turns 18, they can be an ideal investment solution to help provide for a child’s future.
Please remember that the tax rules for both Junior ISAs and ISAs may change in the future and their tax advantages may depend on your individual circumstances. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your Financial Adviser.
