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

SCF2810

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!

eskbanker

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.

SCF2810

I thought that I was and then I thought that I had messed it up for him. Thanks for your reply.