ISA's for children

mike88

The Prime Minister hinted today at Prime Minister's Question Time that ISAs for children will be introduced at the next budget on 23 March.

ultrawomble

I wonder if they'll come with strings attached in a similar manner to the CTF.

It would seem so:

http://www.guardian.co.uk/money/2010/oct/26/junior-isa-childrens-savings-account

Reaper

ultrawomble wrote: »

I wonder if they'll come with strings attached in a similar manner to the CTF.

It would seem so:

http://www.guardian.co.uk/money/2010/oct/26/junior-isa-childrens-savings-account

I can't see any strings in the article other than the suggestion it might be only be for children born after the CTF ended. If they do it that really would be a shame. It ought to be any child of any age.

ultrawomble

Reaper wrote: »

I can't see any strings in the article

This one:

Hoban said all returns within a Junior Isa will be tax free and all funds placed in the account would be owned by the child and would be locked in until he or she reached adulthood.

I guess it may deter some people in that they won't be able to draw on the funds for the child's use should they need to do so

Rollinghome

jimjames wrote: »

2) If a child receives £100 a year in income from savings given by parents then it is taxed as the parents income.

And perhaps worth underlining that the £100 rule doesn't apply to money from other than parents or step-parent, so doesn't apply to money from grandparents.

AirlieBird

Reaper wrote: »

I can't see any strings in the article other than the suggestion it might be only be for children born after the CTF ended. If they do it that really would be a shame. It ought to be any child of any age.

The Government today confirmed that junior ISAs will be available to all UK resident children under 18 who do not have a CTF.