Will moving CTF to a JISA count as part of this years £4260?

kcandbunny

Hi Im planning on moving my childs old trust fund into a junior ISA. I have £4260 to invest for her which I know is the limit per year. Just wondering if when you move the old trust fund money (£500ish) as you are only allowed one of these accounts would that money use up this years entitlement ??
Thanks

Alexland

For an external transfer (to a new provider) the CTF transfer will be treated as a previous year JISA subscription so you would have your child's full current year JISA allowance remaining.

https://www.gov.uk/guidance/transfer-of-a-child-trust-fund-or-junior-isa-if-youre-an-isa-manager#transfer-of-a-ctf-to-a-jisa

As such it is possible to 'double dip' by making CTF contributions in advance of the transfer.

The annual subscription limit for a CTF is based on the child’s birth year while JISA subscriptions are based on tax years. Where a CTF is transferred to a JISA, the CTF provider does not need to pass any subscription details to the JISA manager. Once the transfer has been made, the child can access the full JISA subscription limit for the tax year of transfer regardless of any subscriptions made to the CTF in that year.

Alex

xylophone

https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html