JISA to avoid Parent Gift Tax

HJones22

Sorry I feel like this is a really simple question, but can't find exactly the answer when looking on the forum. Maybe looking for the wrong key words, so advanced apologies for the likely repetition. 

I have only just realised about the Parent gift tax rule for under 18s, possibly because we have never been close to earning enough interest. But I have been saving £100/month since my child was born almost 6yrs ago, so now have roughly £6000/£7000, and I don't have very much of my own, or my husband's personal allowance to play with unfortunately. 

I was going to open a JISA, but I must admit I have found getting information a bit frustrating. 

I don't like the idea that the money is locked away until he is 18. So thinking I'll add 60% to ISA and the rest into a savings account, and continue to monitor the interest situation as this builds over the years. 

But does anyone have any other suggestions, or any suggestions on whether to go Stocks and shares or just cash? Also, as a lot of the Junior ISAs are in person or postal application, I'm thinking I may be too late to apply for any of these in this tax year, but if I open an online one with a lower rate of interest and put in as much money as I can now, do I have to wait a full year to be able to transfer this years allowance into another account, or can I then transfer it when I open a new tax year account next week?

Albermarle

A stocks and shares JISA is better if the child is young(ish), as investing should give a better result than saving in  the longer term.

These two platforms offer them with no platform fee, although there will be a fee for the investment(s) you choose. You can open one in a matter of minutes online.

Junior ISA | Hargreaves Lansdown (hl.co.uk)
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity

I don't like the idea that the money is locked away until he is 18. 

Most posters asking about JISA's/childrens savings etc do not like the idea of their offspring getting control of the money at 18 ( although there is nothing you can do about it). So interesting to see an alternative view.

HJones22

Albermarle said:

A stocks and shares JISA is better if the child is young(ish), as investing should give a better result than saving in  the longer term.

These two platforms offer them with no platform fee, although there will be a fee for the investment(s) you choose. You can open one in a matter of minutes online.


I don't like the idea that the money is locked away until he is 18. 

Most posters asking about JISA's/childrens savings etc do not like the idea of their offspring getting control of the money at 18 ( although there is nothing you can do about it). So interesting to see an alternative view.

I just would like to have access if he wants to get a car or driving lessons etc pre-18, or maybe some other big payment, that is probably my biggest issue. But we are very lucky to have other family contributing money for birthdays etc. So I think I'll plan to keep all his money not from us in an open savings account, then hopefully that cash can be more accessible for when he needs it pre-18. Thank you so much for your reply, checking out those websites now!