We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

JISA and 18th birthday

Options
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.
Old dog but always delighted to learn new tricks!

Comments

  • masonic
    masonic Posts: 27,181 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 28 February 2015 at 9:47PM
    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
    westy22 Posts: 1,105 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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.
    Old dog but always delighted to learn new tricks!
  • masonic
    masonic Posts: 27,181 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I was just editing the post with a slightly newer version of the document that makes this clearer.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.