Savings and Investments from Newcastle Independent Financial Advisers

Amethyst IFA

83 Howard Street
North Shields
Tyne and Wear  NE30 1AF

0191 257 6704 0191 257 6256 Mon - Thurs 9am to 5pm
Friday - 9am to 4:30pm

Junior ISAs

Individual Savings Accounts for children or Junior ISAs were introduced in November 2011 replacing Child Trust Funds. They are long term, tax-free savings accounts for children who

  • are under 18
  • live in the UK
  • are not entitled to a Child Trust Fund account.

A child cannot have a Junior ISA if they already have a Child Trust Fund account.

There are two types of Junior ISA, a cash Junior ISA and a stocks and shares Junior ISA and a child can have one or both types at any one time but the total amount which can be paid into either or both combined (if they have both) is £4,000 (as of 1st July, 2014) in each tax year.

If the child is under 16 the account must be opened by someone with parental responsibility, eg a parent or step-parent, who then becomes the 'registered contact' and the only one who can change the account or provider. They should also keep all paperwork and report on any change of circumstances.

Anyone can put money into the account (providing the annual limit is not exceeded) but only the child can take it out and only then when they are 18. If they choose not to take it out or invest it in a different type of account then the Junior ISA will automatically become an adult ISA.

The money in the account can only be withdrawn before the child is 18 under two conditions:-

  • The child is terminally ill, in which case the 'registered contact' can take the money out
  • The child dies, in which case the money will be paid to the person who inherits the child's estate.

A child cannot have a Junior ISA if they already have a Child Trust Fund account. Although, from April 2015 you will be able to transfer Children's Trust Funds into an ISA.


Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.

The value of investments and the income from them may go down. you may not get back the original amount invested.

The Financial Conduct Authority does not regulate taxation advice. We are entered on the Financial Services register No 623925

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amethyst IFA Paul Richardson Alan Dennett Malcolm Butters Liz MacBride Keith Wilkinson Stephen Anderson Karen Chapman