We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Can my 16 year old son pay full amount in to Junior ISA (c£4k) and £200 per month in to H2B?

Options
My 16 year old has had a Junior ISA for many years which has had the full amount paid in to it each April. This year March I got him to open a H2B ISA with Virgin Money with £1,200 and thereafter £200 per month.

Have I done something wrong in paying the c£4.2k in to his Junior ISA and £1,200 followed by £200 per month in the same tax year?

I am unclear as I thought he could hold both (and pay in to both) but the reply I get from Virgin is yes he can hold both as long as he doesn't pay in to both in the same tax year.

Anyone who can reply in plain English I would be grateful!

Comments

  • eskbanker
    eskbanker Posts: 37,067 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Virgin are wrong and you're right!

    https://www.gov.uk/guidance/repair-a-junior-isa-and-manage-account-holders-subscriptions:
    Subscriptions between ages 16 and age 18

    When a child reaches age 16 they can apply for an cash ISA which they can subscribe to in addition to any subscriptions made to their JISA(s). Holding both a cash JISA and a cash ISA does not breach the JISA rule that the child can only have one JISA account of each type, and the subscription limits for all ISA products apply independently of whether or not a child holds, or has held, a JISA in the relevant year.

    Therefore, in the tax year in which the child turns 16 they can subscribe up to the JISA limit, and from their birthday they can, in addition, subscribe up to the overall ISA limit to a cash ISA.

    https://www.moneysavingexpert.com/savings/junior-isa/#accordion-content-783803372-9:
    Those aged 16 or 17 can have both a junior ISA AND an adult cash ISA or Help to Buy ISA

    When a child turns 16 they can also open a normal cash ISA OR a Help to Buy ISA as well as a junior ISA (however, they cannot open an adult stocks & shares ISA or a Lifetime ISA until they are 18).

    So 16 and 17-year-olds can have a bigger tax-free savings allowance than any other group.
  • I thought that I was and then I thought that I had messed it up for him. Thanks for your reply.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.