Cgt jisa ctf

Hitting

Is CGT always payable should any Investment gain exceed the annual allowance, or can an investment be held for a long time whereby no CGT is payable.

Has JISA replaced CTF, if a CTF was opened a few years ago, can funds be added after April 2015 or would it need to be invested into a JISA as the alternative?

bowlhead99

Hitting wrote: »

Is CGT always payable should any Investment gain exceed the annual allowance

yes unless the gain was made inside a tax protected wrapper like the ctf or jisa you mention or regular isa or pension etc

, or can an investment be held for a long time whereby no CGT is payable.

there used to be a thing called taper relief which was scrapped in favour of simplifying it and lowering the standard percentage tax rates instead. Now you just pay tax on whatever gain you've got.

Has JISA replaced CTF

It has replaced them in that CTFs are not available for people who were not born in the limited time period of a few years when they were being given to people born in those date ranges. If you were born before CTFs were launched or after they stopped, you can only get a Jisa which is the standard thing available to people being born now.

, if a CTF was opened a few years ago, can funds be added after April 2015 or would it need to be invested into a JISA as the alternative?

Funds can still be added into a CTF, assuming you want to keep the product you have. Or the CTF can be converted into a JISA and add to that instead.

Hitting

Funds can still be added into a CTF, assuming you want to keep the product you have. Or the CTF can be converted into a JISA and add to that instead.[/QUOTE]

If CTF was opened by a parent, I presume I can't invest in a JISA as a Grandparent for the same child?

Unless perhaps the parent converts the CTF to a JISA?

xylophone

If the child already has a CTF, a JISA cannot be opened in addition whether by the parent or anybody else.

It would appear that the CTF will be transferable/convertible to the more flexible JISA in April, although no information is yet available from the government about the procedure.

https://www.hl.co.uk/investment-services/junior-isa/ctf-transfers-to-junior-isas

A grandparent can contribute to CTF/JISA - (s )he should check with the parents that the subscription limit will not be exceeded.

Hitting

xylophone wrote: »

A grandparent can contribute to CTF/JISA - (s )he should check with the parents that the subscription limit will not be exceeded.

Accepting what you say,the parent would have to convert the CTF to a JISA before the the Gparent could invest in JISA for his Gchild after April15..... always in the knowledge of Parent.

Is this correct?

xylophone

You can invest in the CTF now (assuming subscription limit not exceeded) and in the CTF (whether or not converted to JISA) in the future.

Hitting

xylophone wrote: »

You can invest in the CTF now (assuming subscription limit not exceeded) and in the CTF (whether or not converted to JISA) in the future.

I, as Gparent don't wish to invest in the CTF, I want to invest in a JISA, but presumably I can't unless the Parent converts the existing CTF into a JISA, only then am I able to invest into a 2015 (April) JISA,...is this correct?

Whereas at present because of the existing CTF I cannot?

macgyver

Hitting wrote: »

I, as Gparent don't wish to invest in the CTF, I want to invest in a JISA, but presumably I can't unless the Parent converts the existing CTF into a JISA, only then am I able to invest into a 2015 (April) JISA,...is this correct?

Whereas at present because of the existing CTF I cannot?

That is absolutely right. Wait until April to see if and when the CTFs get converted to JISA.

Looby77

I am trying to arrange a CTF to JISA transfer as soon as they are allowed. I spoke to Halifax who say just start a new JISA and don't worry about the CTF after 6th April but I'm not so sure. When I asked about CTF transfer into a JISA they did not seem to understand and just said transfer it into a normal account and then open a JISA. However this will take the CTF money out of the TAx Free wrapper. I don't think the values will make a difference for us but I am concerned that the advice they give is not correct.
Also I was looking at the HMRC site. It seems possible that CTF and JISAs have different 'years'. The investment year for a CTF starts on the childs birthday and ends the day before the next birthday (regardless of Tax Year) So if someone was being given a big sum of money it might be best to fill up the CTF before their birthday and then open the JISA after - depending on when their birthday is. If anyone finds some good clear rules I would love to know.

Reaper

Looby77 wrote: »

I am trying to arrange a CTF to JISA transfer as soon as they are allowed. I spoke to Halifax who say just start a new JISA and don't worry about the CTF after 6th April but I'm not so sure. When I asked about CTF transfer into a JISA they did not seem to understand and just said transfer it into a normal account and then open a JISA. However this will take the CTF money out of the TAx Free wrapper. I don't think the values will make a difference for us but I am concerned that the advice they give is not correct.

Halifax are wrong on both counts.

Looby77 wrote: »

Also I was looking at the HMRC site. It seems possible that CTF and JISAs have different 'years'. The investment year for a CTF starts on the childs birthday and ends the day before the next birthday (regardless of Tax Year) So if someone was being given a big sum of money it might be best to fill up the CTF before their birthday and then open the JISA after - depending on when their birthday is. If anyone finds some good clear rules I would love to know.

Interesting idea. Sounds valid but I can't confirm it. We will have to see how the transfers are arranged when they become available.

xylophone

Halifax who say just start a new JISA and don't worry about the CTF after 6th April but I'm not so sure.

Do the staff get any training at all?

http://www.halifax.co.uk/investments/our-investment-products/junior-stocks-shares-isa/?pagetabs=4

"Unfortunately the HMRC regulations mean that if the child either holds or was eligible for a Child Trust Fund they will not be able to open a Junior ISA. Typically children born between 1st September 2002 and 2nd January 2011 will be eligible for a CTF. This means you cannot open a Junior ISA for them. For further general information on the Child Trust Fund and Junior ISA, please see Money Advice Service website."

http://www.halifax.co.uk/isas/isas-explained/common-enquiries/

"Currently you cannot transfer a Child Trust Fund to a Junior Cash ISA."

http://www.thechildrensmutual.co.uk/family-articles/savings/can-you-transfer-your-ctf-to-a-junior-isa/

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/370178/CTF_xfer_EM.pdf

The draft is above - perhaps Simon Turner at HMRC
- Tel: 03000 546588 or email:
simon.turner@hmrc.gsi.gov.uk.
can throw some light on whether when a CTF is transferred to JISA and the CTF closed, the full JISA subscription will be allowed even if the full CTF subscription has been made in the CTF year.