Junior ISA / NISA Limit at 18

ianmac57

I received a letter concerning my daughter's Junior ISA from her current ISA provider.
Basically it says that she should use her £4,000 Junior ISA limit before her 18th birthday (imminent) as when she turns 18
1. she will lose her £4,000 JISA allowance and
2. she will then be eligible to put £15,000 into a NISA.
I doubted this and telephoned to query this situation. I was informed that there is an anomaly for those turning 18 who can invest in both a JISA and a NISA in the same tax year.


That certainly seems strange and at odds with the information on this website :

On the savings / junior-isa page it states :

Once the child turns 18, the junior ISA automatically rolls over into a normal adult NISA, and they will retain whatever split between cash and investments existed at that time.
From then on, the account holder will be able to add cash up to whatever the prevailing NISA allowance is at the time (currently £15,000/year). The £15,000 can be split however you chose to between a cash NISA and a stocks & shares NISA.


Some clarification would be appreciated.


Many thanks to all.


IanMacK

ianmac57

What I omitted to include was that I was told that she could effectively invest a total of £19,000 in the tax year in which she turns 18 (£4,000 JISA + £15,000 NISA).

Archi_Bald

You were told correctly.

xylophone

http://www.hmrc.gov.uk/isa/new-isa-faq.pdf

"What is the limit for NISA savers under the age of 18?

If you are aged between 16 and 18, you can hold a Cash NISA but cannot open a Stocks and Shares NISA. From 1 July 2014, you will be able to pay up to £15,000 into your Cash NISA for the tax year 2014-15. This is in addition to any amounts that you pay into a Junior ISA that you hold."

ianmac57

Thanks Archi Bald and Xylophone.
HMRC certainly doesn't make it clear.
I looked at the link and it talks about being able to pay £15,000 into your cash NISA (in addition to amounts paid into the JISA).


Both the £4,000 JISA and £15,000 NISA would go into stocks and shares.


Thanks


Ian MacK

colsten

ianmac57 wrote: »

HMRC certainly doesn't make it clear.

The information xylophone posted is from the HMRC website.

xylophone

As is stated in the HMRC link, those between 16 and 18 cannot hold a stocks and shares NISA.

The rules for the JISA remain the same.See https://www.gov.uk/junior-individual-savings-accounts/overview