Junior ISA transfer

MadMat

I currently hold a Cash JISA for my 14 year old son, and want to open a S/S ISA for him too, he's just started studying business studies GCSE, and is interested in investing and I thought it'd be a good way for him to start learning!

The plan was to transfer £500 from his cash JISA, and then set up a DD topping up at £25 a month, then I find this on the transfer form from HL

Q. Can I transfer part of a Junior ISA?
A. No, you can only transfer your whole Stocks &
Shares Junior ISA and/or your whole Cash Junior ISA;
this is because you are only allowed to hold each type
of Junior ISA with one provider at any time.

Is this correct? can he not hold a cash JISA with tesco and a S/S JISA with another provider ? I see no mention of this in the MSE guide to JISAs

Mat

delmar39

MadMat wrote: »

I currently hold a Cash JISA for my 14 year old son, and want to open a S/S ISA for him too, he's just started studying business studies GCSE, and is interested in investing and I thought it'd be a good way for him to start learning!

The plan was to transfer £500 from his cash JISA, and then set up a DD topping up at £25 a month, then I find this on the transfer form from HL

Q. Can I transfer part of a Junior ISA?
A. No, you can only transfer your whole Stocks &
Shares Junior ISA and/or your whole Cash Junior ISA;
this is because you are only allowed to hold each type
of Junior ISA with one provider at any time.

Is this correct? can he not hold a cash JISA with tesco and a S/S JISA with another provider ? I see no mention of this in the MSE guide to JISAs

Mat

Doesn't this just say you cannot transfer part of either JS&S/Cash ISA? If so just open a JS&S ISA with a direct debit and forget about the lump sum (or find the lump sum from elsewhere).

MadMat

I was just wondering if HL are correct and it is not possible to do a partial transfer from a cash JISA to a S/S one.

obviously the way around this would be to set up the S/S with a £50/month DD instead of splitting the current £50 a month that goes into his cash JISA.

Mat

xylophone

https://www.gov.uk/junior-individual-savings-accounts/overview

"There are 2 types of Junior ISA:

a cash Junior ISA, ie you won’t pay tax on interest on the cash you save
a stocks and shares Junior ISA, ie your cash is invested and you won’t pay tax on any capital growth or dividends you receive.
Your child can have one or both types of Junior ISA."


Your child can only have:

1 cash Junior ISA
1 stocks and shares Junior ISA

It is perfectly possible that a cash JISA provider would not offer a S&S JISA and a S&S provider not offer a cash JISA.


Presumably you should open a S&S JISA with your chosen provider then the chosen provider should arrange the transfer?

MadMat

would be nice if people actually read the question being asked before replying!!

xylophone

You asked

Is this correct? can he not hold a cash JISA with tesco and a S/S JISA with another provider

I drew your attention to the official guidance to the JISA.

It is clear that the child may have both a stocks and shares JISA and a cash JISA.

I also pointed out that since one provider might not provide both types ( as indeed is the case with the ISA), it would follow that these could be with different providers.

The guidance also says You can also transfer money between your child’s Junior ISAs

For the avoidance of doubt, you might wish to refer to

http://www.hmrc.gov.uk/isa/isa-guidance-notes.pdf

"19.1.1 A JISA, like the ISA, can be offered as either a cash account or a stocks and shares account. Although there will be a single overarching subscription limit for both accounts, a cash and stocks and shares JISA held by a child should be separate accounts for statement and correspondence purposes, and may be held with the same or different providers. "

There is additional guidance below the above.

As to

would be nice if people actually read the question being asked before replying!!

it would be even nicer if those seeking assistance would show common courtesy!

xylophone

http://www.bsa.org.uk/document-library/consumers/junior_isa_april2014-(1)/

"Can I transfer a Junior ISA from one manager to another?

Yes. The transfer must be arranged by the new Junior ISA manager directly with the current Junior ISA manager. Note that Junior ISA managers are not obliged to accept transfers. To transfer your Junior ISA, you will need to complete a transfer application with the new ISA manager.
As a child can have only one cash Junior ISA and one stocks and shares Junior ISA at any time, if you are transferring to the same type of Junior ISA all the funds in the old Junior ISA will be transferred and the account will be closed. If you are transferring to a different type of account, all or part of the funds in the existing Junior ISA can be transferred (see question 13).

Can I transfer funds between a cash Junior ISA and a stocks and
shares Junior ISA, or vice versa?

Yes. Investments in a Junior ISA may be transferred between one type of Junior ISA to another. You can transfer all or part of the subscriptions made in the prior tax years, but if you are transferring subscriptions made in the current tax year, you must transfer all of these funds. Also, note that Junior ISA managers do not have to accept partial transfers in
or out. To transfer funds, speak to the provider you want to transfer money to, and they will ask you to complete a transfer application.!!
At all times a child cannot have more than one cash Junior ISA and one stocks and shares Junior ISA."

PeacefulWaters

MadMat wrote: »

would be nice if people actually read the question being asked before replying!!

With that attitude I'm amazed you got any further assistance,

MadMat

I agree posted in haste, rushing out to work, I apologise, a badly worded and poorly thought out post!

Thanks very much Xylophone for your help.

Still confused as to why the HL transfer paperwork only gives me the one option and that's to transfer the entire cash JISA balance and close the account. I guess a phone call to their help desk tomorrow is the best course of action.

Mat

Eco_Miser

MadMat wrote: »

Still confused as to why the HL transfer paperwork only gives me the one option and that's to transfer the entire cash JISA balance and close the account. I guess a phone call to their help desk tomorrow is the best course of action.

Because HL don't want to mess about with partial transfers.