Switching money from a CTF to a JISA

Mr_Jones

Good morning
I have decided to switch my daughter's money from her Child Trust Fund to a Junior ISA.
She is 10 and we have paid in £10250 and now the fund is worth £12600 and so we are looking for a better return.
Is it possible to switch half of it to a Junior Cash ISA and half of it to a Junior Stocks and Shares ISA?
I know Coventry BS only offer Junior Cash ISA's so therefore could it be split over 2 providers and logistically how would this work?
Also if we switch now middle of April will it immediately take up this years allowance of £4368 ? Or can we still add to it tax free during the course of this financial year?

Reaper

Yes it can be split. The transfers will not use up any of your annual allowance.

cloud_dog

I thought it can be split but it must be held with a provider that offers both cash and S&S options?

Reaper

From a quick search...

When transferring from CTF to JISA "Part transfers of CTF investments cannot be made."
https://www.gov.uk/government/publications/isa-manager-bulletin-65/guidance-transfer-of-a-child-trust-fund-to-a-junior-isa

So you need to transfer it ALL from CTF to JISA. I would suggest transferring it all to a stocks and shares ISA then starting a new cash JISA and start adding annual allowances until they reach the proportions you are after.

You are definitely allowed to have 1 cash JISA and 1 stocks and shares JISA (but not more than 1 of each).

I haven't seen a restriction on them being with the same institution but someone please correct me if I am wrong.

cloud_dog

I found this on the Which? site:

How many Junior Isa accounts can I open?
With adult Isas, it's possible to have multiple Isa accounts from different tax years, and partially transfer savings from previous years. But it's different with Junior Isas.

You're only allowed to have one Junior cash Isa and one Junior stocks and shares Isa.

So, say you've saved £6,000 over the past three years in a Junior cash Isa. You've found another account that pays a better rate of interest, and want to put this year's Junior Isa allowance into it.

You'll have to transfer the £6,000 you've already saved up into the new account you've opened.

So, that seems to confirm one JISA provider, although you can split in to cash and S&S.

eskbanker

cloud_dog wrote: »

I found this on the Which? site:

How many Junior Isa accounts can I open?
With adult Isas, it's possible to have multiple Isa accounts from different tax years, and partially transfer savings from previous years. But it's different with Junior Isas.

You're only allowed to have one Junior cash Isa and one Junior stocks and shares Isa.

So, say you've saved £6,000 over the past three years in a Junior cash Isa. You've found another account that pays a better rate of interest, and want to put this year's Junior Isa allowance into it.

You'll have to transfer the £6,000 you've already saved up into the new account you've opened.

So, that seems to confirm one JISA provider, although you can split in to cash and S&S.

I don't read it as saying that (only that all cash must be with the same provider) but more to the point, the official guidance clarifies the definitive position:

A JISA, like the ISA, can be offered as either a cash account or a stocks and shares account. Although there will be a single overarching subscription limit for both accounts, a cash and stocks and shares JISA held by a child should be separate accounts for statement and correspondence purposes, and may be held with the same or different providers.