Junior ISA if moving abroad advice

windmill26

Can someone advise me on Child Trust Fund and Junior shares Isa?
We have a CTF with HSBC which seems ok but not great.I would like to transfer the funds to Junior shares ISA but I am not sure if it will be worth it as we are planning to move abroad in a few years time (2 to 3).How both investments would work if the child is not a UK resident anymore? Could we take the money out when we move abroad or it has to stay in the account until my child turns 16 ?Any advice is welcome!

MallyGirl

A JISA locks the money in to 18

xylophone

The child cannot have both a CTF and a JISA.

It is possible to move the CTF to JISA - best done before you move abroad if you want to do it I should think.

Whether CTF or JISA contributions can continue to be made after the child has moved abroad - see

https://www.gov.uk/junior-individual-savings-accounts/add-money-to-an-account

If your child moves abroad, you can still add cash to their Junior ISA.

http://www3.moneysavingexpert.com/files/ctf_guide.pdf

WHAT IF MY CHILD HAS A CTF BUT THEN MOVES ABROAD?
The CTF account will remain open and family and friends will be able to continue saving

The above refers to the original contribution limit of £1200 but this has changed to be in line with JISA

https://www.gov.uk/child-trust-funds

Access not available until age 18.

windmill26

Thank you for the links.One question that I couldn't find an answer for is; the money in the CTF or the shares JISA is still getting invested or just "seat" there until the 18th birthday if the child is abroad?

xylophone

it is clear that the HMRC rules permit funds to be added to a CTF/JISA if the child moves abroad.

You would wish to check the T&Cs of the individual providers as to whether they will permit subscriptions from abroad.



Money added to a cash account would continue to earn interest.

Money contributed to a stocks and shares JISA would presumably be invested according to instructions.


Examples

https://www.triodos.co.uk/en/personal/service/faq/?faqId=591978

https://www.iii.co.uk/sites/default/files/pdf/ii-Junior-ISA-Terms-Dec-17.pdf

It occurs to me that you would need to check out the tax on interest situation in the country to which you had emigrated.

windmill26

xylophone wrote: »

it is clear that the HMRC rules permit funds to be added to a CTF/JISA if the child moves abroad.

You would wish to check the T&Cs of the individual providers as to whether they will permit subscriptions from abroad.



Money added to a cash account would continue to earn interest.

Money contributed to a stocks and shares JISA would presumably be invested according to instructions.


Examples

https://www.triodos.co.uk/en/personal/service/faq/?faqId=591978

https://www.iii.co.uk/sites/default/files/pdf/ii-Junior-ISA-Terms-Dec-17.pdf

It occurs to me that you would need to check out the tax on interest situation in the country to which you had emigrated.

Thank you very much for your input.Now I have to decide if it is worth it leaving the funds in the CTF or move it to a shares JISA!

[Deleted User]

I started research into JISA providers, trying to find one which accepts transfers from CTF. Did you guys find one?
Vanguard JISA does not accept CTF transfers.


Unless someone already done that, I think I will have to go to all of them one by one, see which one accepts transfers, and which one takes smallest annual fee.

xylophone

https://www.hl.co.uk/investment-services/junior-isa/transfer-an-existing-junior-isa

Or you could transfer to a cash JISA.

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html