JISA and 18th birthday

westy22

My daughter has had a S&S JISA since they were introduced but will become 18 in October 2015.

I understand from the T&Cs that the JISA will become a normal ISA on her 18th birthday but my query is:

Can she contribute £4080 to the JISA between 6 April and her birthday and then open an adult S&S ISA after her birthday and contribute the full £15,240 allowance or would she only have a remaining allowance of £11,160?

I know that she can have a full adult £15,240 cash ISA allowance for 2015/16 as well as the S&S JISA but cannot find any guidance regarding an adult S&S ISA.

Any advice please, will be much appreciated.

masonic

westy22 wrote: »

Can she contribute £4080 to the JISA between 6 April and her birthday and then open an adult S&S ISA after her birthday and contribute the full £15,240 allowance or would she only have a remaining allowance of £11,160?

Seems she will get a full adult ISA allowance in addition to the JISA allowance...

22.5.2
In addition, from the start of the tax year the child turns 18, they can:
- use their whole JISA subscription limit (even though the JISA will be held for a part-year only); and
- subscribe 50% of their overall ‘adult’ ISA limit to a cash ISA; and
- from their 18 th birthday, invest in a stocks and shares ISA, subject to the normal ‘adult’ subscription limits

For example
A stocks and shares JISA exists from 6 April until the eve of the 18th birthday and can accept subscriptions up to £3,840 JISA limit for 2014-15 (This limit will rise to £4,000 on 1 July 2014.) The next day it becomes an adult stocks and shares ISA which can accept subscriptions up to the annual ISA limit of £11,880. So in a child’s 18th year, they can (for that one year only) subscribe £15,720 (in 2014/15 before 1 July 2014) or £19,000 after 1 July 2014 to what is effectively the same account.

westy22

Brilliant - thanks masonic for finding that information.

Obviously since that was issued the respective allowances have increased to £4,000 and £15,000, and will rise again on 6 April, but presumably the legislative guidance and principles of 22.5.2 remains valid.

masonic

I was just editing the post with a slightly newer version of the document that makes this clearer.