Junior ISA or Child Trust Fund

Mkris

Hello all,

My son was born in November 2009 and I want to start saving for him (I know, its already late.... ) . I understand from MSE that my little one is not eligible for Junior ISA. But I do not want to go for Child Trust Fund as there are quite a few drawbacks.

On a google search for child ISA I came acros childisa.org and just wanted to find out what it'd say on the online application form, if I give my son's DOB. When I did, it gave a check box with

Holders of a Child Trust Fund are not eligible for a Junior ISA. In order to proceed with your application please confirm that the Child is not a current holder of a Child Trust Fund. I confirm that the Child is not a current holder of a Child Trust Fund

Now I'm confused. Does this mean that I can still opt for a Junior ISA for my son as I do not have CTF ?

Thanks in advance.

Mk

jimjames

Mkris wrote: »

Holders of a Child Trust Fund are not eligible for a Junior ISA. In order to proceed with your application please confirm that the Child is not a current holder of a Child Trust Fund. I confirm that the Child is not a current holder of a Child Trust Fund

Now I'm confused. Does this mean that I can still opt for a Junior ISA for my son as I do not have CTF ?

Thanks in advance.

Mk

Yes you can, as long as you dont have a CTF.

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/AnintroductiontotheChildTrustFund/DG_193687" If you don't use the voucher by the expiry date
Vouchers issued before 1 January 2012 are valid for 12 months. Those issued on or after 1 January 2012 are valid for 60 days.
You have until the expiry date shown to choose the type of account you want to open.
If you don't open an account by the expiry date, HMRC will automatically open an account for your child. HMRC will write and tell you where your child’s account has been opened.
You are responsible for managing the CTF account HMRC has opened for your child. You will need to become the 'registered contact'.

It would appear that HMRC will have opened an account for your child?

If a child is eligible for a CTF then he cannot have a JISA.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672

"Your child can have a Junior ISA if they:
are under 18
live in the UK
are not entitled to a Child Trust Fund (CTF) account"

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/AnintroductiontotheChildTrustFund/DG_193690
Who is entitled to a CTF account?
Your child is entitled to an account if all of the following apply:
your child was born between 1 September 2002 and 2 January 2011
you were paid Child Benefit for that child for at least one day before 4 January 2011
your child lives in the UK
your child is not subject to any immigration restriction

Mkris

Thanks guys, that explains it... I did confirm with HMRC that no account has been opened for my little one. so I guess, I am eligible for to open a Junior ISA.

Much appreciated. Many thanks.

xylophone

But "Who is entitled to a CTF account?
Your child is entitled to an account if all of the following apply:
your child was born between 1 September 2002 and 2 January 2011
you were paid Child Benefit for that child for at least one day before 4 January 2011
your child lives in the UK
your child is not subject to any immigration restriction

Did all the above apply?

If so, "Your child can have a Junior ISA if they:
are under 18
live in the UK
are not entitled to a Child Trust Fund (CTF) account"

Might be worth checking again with HMRC?

See also http://www.iii.co.uk/investing/isas/junior-isas
"3. And who is eligible to have a JISA in their name?

Any child under the age of 18 and resident in the UK can have a JISA, unless they were born between 1 September 2002 and 4 January 2011 (the period when child trust funds were available). The few who were born between these dates but did not qualify for a CTF are also eligible for a JISA."

And see http://www.halifax.co.uk/savings/accounts/branch-accounts/(From Halifax JISA guidance) "Bear in mind
Children born between 1st September 2002 and 2nd January 2011 were eligible for the government Child Trust Fund and so cannot open a Junior Cash ISA, unless the child was born abroad between these dates and is now a resident in the UK"