Relative has a JISA and CTF!

silvercue

I have a relative whose parents are seperated. One set up a CTF a few years ago and the other recently set up a JISA. They only recently discovered each other had done this.

I told them I don't think they are allowed to hold and pay into both at the same time and looking into it that seems to be the case, so I am trying to help find out what the options are.

I see the advice suggests that you move the CTF into the ISA, but that has some complications as both the CTF and JISA have to be managed by the same parent moving from one to the other, they are not.

Also, I am struggling to see what it means for the periods where the annual payment for JISA, of 9k, will have been exceeded when combined with the CTF.

And what would happed if they just left it and continued paying into both? I assume just a massive tax bill when they are 18?

Any advice appreciated.

Thanks

xylophone

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

I think the parent who opened the JISA should contact the  provider and explain what has happened.

Loobylootomato

Having the same issue and have been told now (after 10 years of investing) that the account is invalid.
Extremely upsetting considering that my daughter had letter telling her how much she was going to get.
Anyone get any responses about complaining about this issue etc?

surreysaver

If the child is old enough to have a Child Trust Fund, you shouldn't be able to open a Junior ISA unless you're transferring either a CTF or jISA in

Loobylootomato

We were able to do so though. We had no idea that this was not allowed as we are not financial experts and we had both policies through the same company.

eskbanker

Have you complained to the company yet?  I don't know if there's any published guidance about exactly how the situation should be resolved but their proposed 'solution' mentioned on the other thread (repay contributions only) doesn't seem particularly fair and so a formal complaint, with escalation to FOS if unsatisfied, would be the next steps....