Our With-Profits Junior ISA lets you build a investment fund for your child free from income & capital gains tax. One-Off admin fee of £79.95 + VAT to set up your Junior ISA.
Junior ISAs (or JISAs) were launched by the government in November 2011 to provide a tax-free vehicle for investing for children under the age of 18. The JISA replaced the Child Trust Fund (CTF) scheme and allows older children a tax-free way to invest and save for the future.
How does a Junior ISA work?
- Available to any child under the age of 18.
- The contributions are invested into stocks & shares. Investment risk applies.
- A Junior ISA is a tax-free vehicle that allows you to invest up to the Junior ISA limit of £4,260 in the 2018-19 tax year. The limit is subject to change.
- The account must be opened by the child’s parent or guardian, after which anyone can pay into it.Important to remember.
- The Junior ISA investment cannot be accessed until the child reaches the age of 18.
- You can pass the account to your child at the age of 16.
Save from just £10 a month or up to your child’s annual ISA allowance
Junior ISA Key Points
Invest from £10 a month up to your child’s annual Junior ISA allowance You can choose a saving style to suit you and your child, from regular monthly payments of £10 at a time to lump sum deposits when you wish. To open a plan with a lump sum, you simply need to deposit an initial minimum of £100, followed by further investments of at least £10 at a time.
Flexible saving to suit you You can increase, reduce, stop or start your monthly savings at any time to allow you total control over your investment in your child’s future.
Tax-efficiency increases the savings potential. When you save in your child’s Junior ISA all growth will be free from income tax and capital gains tax and the lump sum available to them on maturity at 18 will be completely tax-free.
Investment in stocks and shares. While stock market performance can never be guaranteed and investment value can go up as well as down, your money will be invested in our With-Profits Fund where we apply a process known as “smoothing” that looks to even out fluctuations over the investment period.
Setting up a Junior ISA
Setting up a Junior ISA may help you meet the costs associated of university fees, the cost of purchasing and insuring a first car or may contribute to the deposit on a first home. You can open a Junior ISA if you are the parent or legal guardian of any child aged under 18 who doesn’t already have a Child Trust Fund. Other family members or friends can also contribute to the plan at any time.
Junior ISA Fees & Charges
Simple – One-Off admin fee of £79.95 + VAT. Invoiced to the parent or guardian.
No initial charges.
No exist charge (at aged 18).
No on-going adviser fees.
The with-profits fund charge is 1.6% annual management charge (charged by Shepherds Friendly within the fund)