What is a Junior ISA?

With investment, your capital is at risk. Taxation depends on individual circumstances. ISA and tax rules may change.

Junior ISAs are tax-free savings and investment accounts for children. You can invest up to £9,000 into a Junior ISA in 2024/25 – this is called the annual allowance. Anyone can contribute into a Junior ISA, making them a great option for parents, grandparents or other family and friends to save for a child’s future.

Who can open a Junior ISA?

Junior ISAs can be opened for any child who is resident in the UK by their parent or guardian. Once the Junior ISA is open, anyone else (such as a grandparent) can make contributions into the account. The account is held in the child’s name, but they cannot manage the money until they reach 16 and they cannot make withdrawals until their 18th birthday.

Tax benefits of Junior ISAs

Junior ISAs have the same tax benefits as adult ISAs. Investment gains are free from capital gains tax and any investment income or interest on cash savings is free from income tax. They don’t need to be declared on your annual tax return either.

Transferring Child Trust Funds into a Junior ISA

Most children born between September 2002 and January 2011 were eligible for a Child Trust Fund but you can’t have a Child Trust Fund as well as a Junior ISA. New rules introduced in April 2015 allow you to transfer Child Trust Funds into Junior ISAs – giving you more choice and flexibility over how you save for your children’s future.

Transfer a Child Trust Fund