However, children are growing up in a very different and difficult financial world. If saving for children was once an aspiration, it is increasingly becoming a necessity if you want to help them have the best possible start to their adult lives.
Replacing the Child Trust Fund, the Junior ISA provides the same tax advantages as a standard ISA; tax efficient interest on cash deposits, no further liability to income tax on dividends and no capital gains tax.
The favourable tax treatment for Junior ISAs may not be maintained in the future and is subject to changes in legislation.
One of our advisers will be able to sit down and talk through the options available to you, we’ll help you maximise the benefits of the account, stay up to date on any changes in legislation, and help secure long-term financial security. As is our signature, we’ll explain everything clearly and logically, making it easy to understand the features of our Junior ISA offering.
Simplify the process of opening a Junior ISA by talking to our team today. Book a no-obligation consultation or call us on 01202 695 801!
The value of an ISA with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested.
The favourable tax treatment of ISAs may be subject to changes in legislation in the future.
In an age where the online world is at our fingertips, why shouldn’t your wealth management be there as well? Our Online Services allow you to access all your wealth investments in one smart place. Whether you’re already registered, or just about to, here are some great features that can help you get the most from your online account.
Registering for Online Services with an activation code allows instant access. If you haven’t got a code, please contact your adviser. Registering online ensures all information is password protected.
Set your communication preferences to receive your digital reports and electronic correspondence.
Make online debit card payment for ISA and any JISA top ups with a debit card
linked to your account, on demand and at a time that suits you. Make payments to Unit Trusts, Retirement Accounts and new ISAs. (Speak to your adviser in order to get this process started) View the value of your investments in a range of currencies and see a breakdown of
this valuation. Instant notifications when a new document is available to view.
For every client opting for paperless correspondence, St. James’s Place will donate £5,to the St. James’s Place Charitable Foundation.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation.
Less well-known is that children can also have a pension fund as soon as they are born – and setting one up can bring significant tax advantages. Even if your child is a non-taxpayer, they will still get basic-rate tax relief on contributions. That means a maximum of £2,880 a year is automatically grossed up to take account of tax at 25%, giving an annual investment of £3,600
A Junior ISA provides a beneficial way to save or invest, allowing parents, guardians, or the child themselves (if they are 16 or 17 years old) to contribute funds into the account.
Any growth made over time in a Junior ISA accumulates as either interest or investment returns without being subject to income tax or capital gains tax. The funds are normally intended to be used for important milestones in the child’s life, such as higher education expenses, purchasing a home, starting a business, or any other financial goals they may have as they become adults.
Junior ISAs are available to all children who are a UK resident and do not have a Child Trust Fund. The Child Trust Fund (CTF) was available to those born from 1 September 2002 to 2 January 2011, and was transferable into a Junior ISA from 6 April 2015. The CTF would need to be transferred to a Junior ISA before contributions are made to the Junior ISA.
There are two types of Junior ISAs available: cash Junior ISAs and stocks and shares Junior ISAs.
Each tax year, there’s a limit on how much you can contribute to your Junior ISA. As of 2023, the limit is £9,000. Unused allowances cannot be carried forward to future years. Although a child can hold both a Cash and a Stocks & Shares Junior ISA the total annual contribution across both accounts is limited to £9,000. Once the child turns 18, the Junior ISA automatically converts into an adult ISA, and they gain full control over the funds. This provides a great opportunity for them to start their financial journey with a savings foundation already in place.
The value of an ISA with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested. An investment in a Stocks and Shares ISA will not provide the same security of capital associated with a Cash ISA.
The favourable tax treatment of ISAs may be subject to changes in legislation in the future.
Cash ISAs are not available through St. James’s Place.
Opening a Junior ISA offers several benefits for both children and their parents or guardians. Here are some of the main ones:
Opening a Junior ISA is a proactive and forward-thinking approach to planning a child’s financial future. It encourages saving, offers tax advantages, and empowers children to take control of their financial lives before and when they reach adulthood.
At Lester Brunt, we have over a decade of experience in helping people maximise the benefits of their Junior ISAs. We offer a tailored approach that will focus on the child’s individual goals and help them learn about investments and savings.
Our aim is to ensure that our financial advice is accessible and understandable, so that those investing with us can feel confident in the decisions they are making. This is especially important for our Junior ISAs as we want our young investors to have a good understanding of what opening an ISA means.
The value of an Junior ISA with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The favourable tax treatment of ISAs may be subject to changes in legislation in the future.
Although anyone can contribute to an ISA for a child only the parent/legal guardian can open the ISA for them.
For more details about services that we offer reach out to us on 01202 695801, or click the button below.
