Child Trust Fund and Junior ISA contributions

digital

Bear with me...

If a child's birthday is on, say, 25 November, is it possible to pay £4080 into their CTF before their birthday, another £4080 into it after their birthday, then open a Junior ISA, transfer the CTF into the JISA and then pay a further £4080 into the JISA this tax year?

xylophone

The CTF "pay in period" is birthday to birthday so if you regard the "pre 25th" as a CTF year and the "post 25th" as the next CTF year then that should be fine.

The JISA "pay in period" aligns with the tax year.

It has already been remarked that transferring the CTF to a JISA closes the old CTF account so that even if a full contribution has been made in the CTF year, another full pay in can be made into the JISA in the tax year it is opened.

It would therefore seem that what you propose would be possible?

digital

Thanks.

I was confident with the CTF part of the plan, but was unsure about being able to contribute the additional £4080 to the JISA having already taken advantage of a subscription to a tax-free product within the tax year.

xylophone

http://www.legalandgeneral.com/investments/isas/junior-isa/transferring-a-ctf/

"The subscription year for Junior ISAs runs from 6 April to 5 April, not from the child’s birthday. Any transfer from a CTF to a Junior ISA doesn’t affect the child’s Junior ISA allowance for the current tax year."

digital

Thanks for that. Exactly what I wanted to know but couldn't find!