Hargreaves Lansdown Junior ISA
Junior ISAs are an initiative by the Government to help parents save for their children's future. Launched in November 2011, junior ISAs offer tax-free savings and investments. Each eligible child is allowed to have one cash ISA and one stocks and share ISA at any time. Transfers are permitted between cash and stocks and shares junior ISAs, or to another junior ISA provider.
There is no capital gains tax and no UK income tax to pay on the income on the investments in a Junior ISA. They don't need to be declared on any tax returns, and this simplicity makes them the first port of call for many.
What if your Child has a Trust Fund?
Children who were born between 1st September 2002 and 3rd January 2011 will already have a Child Trust Fund, and are therefore not eligible for a junior ISA. However, you are able to transfer in to a Junior ISA. Talk to your provider for more details or use our comparison tables to find a provider who will except transfers in.
Junior Investment ISAs
Junior Investment ISAs are very similar to their adult counterparts. Your money is invested in funds, bonds, property etc. and a higher return can be gained on your initial investment. This should be viewed as a long term investment, ideally around five years. Parents, relatives and friends are all able to pay towards the child’s future, making it an easy way for everyone to be involved financially.
Hargreaves Lansdown offer a comprehensive Junior ISA service.
- Opening an account online takes less than five minutes, and you can start from just £25 per month or a £100 lump sum
- You can view and manage your child’s investments online or using Hargreaves Lansdown's award-winning app, and see all of your family accounts in one place
- Friends and family can contribute through regular or one-off payments (up to the current £4,128 limit for the 2017/18 tax year)
- A wealth of expert investment research is available, helping you make the most of this investment in your child’s future
- Existing Child Trust Funds can be easily transferred into Hargreaves Lansdown Junior ISAs
Whilst the rules state a child can only have one Junior Stocks & Shares ISA and one Junior Cash ISA at any one time, transferring between the two is acceptable.
You are also free to switch your child's Junior Stocks & Shares ISA or Junior Cash ISA provider. However, since only one of each type of Junior ISA is permitted, you would need to transfer the full amount of your child's existing Junior Stocks & Shares ISA to any new provider.