HL Junior ISA vs Junior Investment Account

jinkster

Hello all,

Newborn so apologies for the silly questions.

Junior Stocks Shares ISA vs Junior Investment Account

https://www.hl.co.uk/investment-services/investing...

https://www.hl.co.uk/investment-services/junior-is...

I am a little confused between the 2 of them - seem pretty identical with the exception of the tax. 

ISA - tax free (Will this effect a newborn?) 

Does a child have a personal tax allowance (circa £11,000).

Thanks in advance for the help. 

MX5huggy

Seems the Junior investment account is currently closed to applicants so it’s a little academic. 

But the JIA wouldn’t be tax free Children have the same tax allowances as adults. But if it is money from their parents interest / returns are treated as belonging to that parent for tax after the first £100 but once it’s over £100 the whole amount is taxable (not just the bit over £100).. 

A JISA locks away the money until they are 18 and then it’s their money to do what they like with, money in a JISA is not taxed (even if it came from parents). 

 

Fidelity offer fee free JISA. 

If you are not using your own ISA allowance to the max you might prefer to save with this as you have control of the money at 18, making sure it’s spent on beer and recreational drugs and not wasted. 

xylophone

If you are not using your own ISA allowance to the max you might prefer to save with this as you have control of the money at 18, making sure it’s spent on beer and recreational drugs and not wasted. 

You are joking......I hope......