Saving for Nephew

cube101

Hello,
I'm wanting to set up a roughly £15/month DD into a an index tracker for my nephew (3 soon) His Mum and Dad have the Child trust fund (cash/savings) already so I want to do this separately (stocks/investment) my questions.
I don’t think I can open a Junior ISA as he was born at the wrong time, am I correct?
Can I just open a standard NON –ISA tracker in his name? I’m presuming tax won’t be a major issue as he’ll have a tax free allowance like the rest of us?
Are there any other options?

Thanks

atush

You cannot open a JISA for him if he has a CTF at this point in time. Hopefully that will change.

You can open an acct as a bare trust for him, but at 15/mon think hard about any costs. You may find it cheaper to just add 15/mon to what you invest for yourself, then you can put a part in your will specifying a % of that acct for him?

xylophone

You can't open a Junior ISA. https://www.gov.uk/child-trust-funds/overview
Each child may have either a CTF or a JISA.
The CTF cannot be transferred to a JISA.

It is possible for an OEIC/investment trust to be held in bare trust for a child see example here http://www.fandc.com/new/IT/Default.aspx?id=78401 Section 2 Investing for children through a bare trust

and here http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

With regard to tax, a child has a single person's allowance.http://www.hmrc.gov.uk/individuals/savings-income.htm

If there were tax to reclaim on an interest paying stockmarket investment, the parents would have to do this.