CTF conversion to ISA

Gary2Seven · 12 February 2015 at 12:05PM

As I understand it, from April this year a Child Trust Fund can be converted to a Junior ISA.

Does anyone know what the process is/will be? and when I can start the process?

Desperately want to get my Daughters converted so I can add a small inheritance she received from my mother.

xylophone · 12 February 2015 at 1:11PM

The ability to convert is "expected" to be in April but there are as yet no details.

It would be logical for an announcement to be made in the budget?

bowlhead99 · 12 February 2015 at 1:25PM

HMRC are working towards April implementation and set out the proposed transfer process in ISA bulletin 64; consultation comments should be made by 20 Feb.

However, guidance for ISA managers is in the process of moving from the HMRC website to the new .gov.UK website and new bulletins are not currently showing beyond around #60. Either way, it's not final til it's final.

If you"desperately" want to add a small amount of money, why not add it to the existing CTF. If the child is young, or even if she isn't, what desperately bad things will happen if the money is in a bank account or non-wrapped investment or CTF for the next couple of months?

dan-_3 · 28 February 2015 at 9:27AM

I have a related question: If you want to open a JISA for a child who already has a CTF, is it compulsory to convert the CTF or can it be left to run in parallel with the JISA?

I'm planning on investing money for my nieces but one of them has a cash CTF. Presumably, if every child is allowed both a cash and equity JISA from April onwards, I could contribute to equity JISA for each of them and leave my sister to choose between CTF and JISA for the cash component.

(PS I'm aware that only parents can open JISA accounts. My sister can do the paperwork then I'll set up a direct debit with the fund platform.)