MSE News: Junior Isa plans unveiled

This is the discussion thread for the following MSE News Story:

"The Government has unveiled proposals for a tax-efficient junior Isa for kids to save up to £3,000 a year ..."
Read the full story:
Junior Isa plans unveiled



  • Percy1983
    Percy1983 Forumite Posts: 5,244
    Part of the Furniture 1,000 Posts Combo Breaker
    Sounds a good plan to me.
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
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    Officially the owner of my own business since 13/01/2012
  • Niksan
    Niksan Forumite Posts: 309 Forumite
    Now only if we could transfer the CTFs to these JISAs.
  • ultrawomble
    ultrawomble Forumite Posts: 492 Forumite
    Its a shame that the £3k annual amount can't be split between cash and investment accounts. As such, the junior ISA is a cash only vehicle (because investment ISAs are only available to +18s) whereas the CTF can be an investment vehicle or a cash vehicle.
  • ultrawomble
    ultrawomble Forumite Posts: 492 Forumite
    Niksan wrote: »
    Now only if we could transfer the CTFs to these JISAs.

    But I believe you can transfer your investment based CTF to a cash based CTF. JISA in all but name?
  • Niksan
    Niksan Forumite Posts: 309 Forumite
    That's true, but as Martin outlines here

    under the Banks may stop supporting CTFs bit. Currently both my children have none investment CTFs, and in my naivety I didn't think you could swap them around like an ISA (smacks self over head). But it would be better if you could move them to something that exists rather than no longer exists and reliant on banks to not take the biscuit.
  • gauly
    gauly Forumite Posts: 284 Forumite
    Not only do I suspect that Junior ISAs will have significantly better rates than CTFs, there is also the advantage that when the child turns 18 they convert into an adult ISA while a CTF doesn't. Plus it is just inconvenient having different accounts for different children. Why not allow transfers from CTFs to ISAs - they are the same thing in all but name? Particularly weird since older children will be allowed Junior ISAs so only those born between 2002 and 2010 are not allowed them.
  • Dorastar
    Dorastar Forumite Posts: 2,170
    Part of the Furniture 1,000 Posts
    Hmm I have one who can have a junior ISA and one who has a CTF - from experience things like this cause trouble when kids are older. My olds got a pay in account for me and my bro when we were babies - his in Halifax account and mine through Canada Life. We both just kept them on then when the Halifax did their 'shares thing' he got enough to buy a car - mine wasn't even enough to pay for the insurance for a car :( Did make me slightly miffed tbh. We wont have any spare to pay in for our two once my pension costs go up and we lose Child benefit anyway and DD (9) has already told us she has shelved her uni plans in favour of writing her books from home as she can do her £9000xtable!
    Mortgage £133,198 going down slowly Brightfuturefund (BFF) £6956
  • Gorgeous_George
    Gorgeous_George Forumite Posts: 7,964
    Part of the Furniture Combo Breaker
    Sounds like a scheme to give wealthy people more options to avoid paying tax. poor people won't have £3,000 to give their children each year.

    Kids already have a generous tax allowance.

    There are 10 types of people in this world. Those who understand binary and those that don't.
  • king100
    king100 Forumite Posts: 1,565 Forumite
    I have a question can a CTF be transferred at the end to an adult ISA.


    Son 7 years old, we put in £3k into CTF per year, thats £33k when 18, thats alot of savings to be getting taxed on?

    Daughter nearly 2, 16 years 3k a year thats 48k to my kid when 18 again alot to be taxed on.
    I all have learnt is from others on many sites.
    Seek legal help if unsure.
    Dont pay Private Parking tickets - they are mere invoices.

  • Niksan
    Niksan Forumite Posts: 309 Forumite
    edited 1 April 2011 at 9:49AM
    Basically AFAIK, as soon as your child is 18 they get the dough, they then can put that into an ISA as you would normally, but no transfer I'm afraid unless they change the rules to make CTFs less restricting.

    In a way I can sort of understand it, as I'm guessing with the JISA you can withdraw at any point, while the CTF is protecting the money the government put in, unless the JISA have the same rules as it can't be touched until they're 18.
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