Junior ISA's question

RobStaffs

I contribute a monthly payment to my granddaughters Junior ISA, this year it will be £30pm. I understand the limit if £4000 pa .Is it possible for me to open a grandparents account for stocks and shares as long as the combined value does not exceed £4000?

colsten

People are only allowed 1 ISA of each type (cash/S&S) each financial year, and the combined total of the deposits per FY must not exceed the annual allowance. There is no such thing as a "grandparent JISA" but assuming your grandchild has an existing cash JISA, an S&S JISA could be opened in addition, and the deposit across both can be up to £4,000 this FY. I believe JISAs must be opened by a parent or a legal guardian.

xylophone

You can invest for your granddaughter outside a JISA - this has no impact on what you pay into the JISA.

An investment trust savings scheme in bare trust might be a possibility.

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

http://www.bailliegifford.com/documentgateway.aspx?_id=3A39B056-DE6E-474E-870C-3DB1B9BB88F3&disclaimer=ok

pinkdalek

RobStaffs wrote: »

I contribute a monthly payment to my granddaughters Junior ISA, this year it will be £30pm. I understand the limit if £4000 pa .Is it possible for me to open a grandparents account for stocks and shares as long as the combined value does not exceed £4000?

£4000 is the total JISA limit, which can be split between cash and S&S. E.g. £2k in cash, £2k in S&S.

It must be opened however by the parent or legal guardian, however there is nothing stopping you contributing towards it once it is set up.