Child Trust fund - moving more than £9000?

Bunnysmoney

Hello all,

My daughter is nearly 16 and her CTF is in a stocks and shares ISA. It lost several hundred pounds following the US tariffs turmoil, and I want to move it out of stocks and shares for this last 2 years before she turns 18, to be on the safe side.

However, I think I can only move it into a Junior Cash ISA, not a savings account, and the limit on cash ISAs is £9000. The CTF has over £10,000 in it.

What are my options in this situation?

Thanks for any expert advice!
  

refluxer

The £9000 limit is a limit on the amount of new subscriptions you can pay into the Junior ISA in any one tax year - it isn't a limit on the total balance you can hold within the JISA - that is set by the provider.

When you transfer from one JISA to another (or a CTF to a JISA), the transferred balance doesn't count towards the annual allowance.

Do you have a Stocks and Shares Child Trust Fund or a Stocks and Shares Junior ISA ? Either way, if you're wanting to move it all into cash then your only option is to transfer the full amount to a Junior Cash ISA (you can't withdraw it to a non-JISA savings account - this can only be done by the child once they reach the age of 18)

xylophone

EXAMPLE


https://www.coventrybuildingsociety.co.uk/content/dam/cbs/member/pdfs/useful-forms/ctf-to-junior-isa-transfer-authority-form.pdf

Reaper

It is vitally important that you TRANSFER the CTF, do not withdraw it with the intention of investing it elsewhere.

xylophone

do not withdraw it with the intention of investing it elsewhere.

Only the child could withdraw the money and then only when  aged 18 or over - he is only 16.

boingy

None of us know the future but I'd suggest leaving it where it is for a month or three. The tariffs were a shock to the markets but they are recovering and Trump is currently rowing back on various tariffs.

If you sell now you lock in that loss. Of course, the man could shock the markets again so it is a tricky one to call.

Reaper

xylophone said:

do not withdraw it with the intention of investing it elsewhere.

Only the child could withdraw the money and then only when  aged 18 or over - he is only 16.

Oh yes! I was multi tasking while replying and I don't multi-task
*embassassed*

xylophone

*embassassed*

Don't be - easy enough to be distracted! I was just clarifying for the OP who seemed unsure about the CTF/JISA  rules.

Bunnysmoney

Thanks for all these comments! And sorry for the delay in coming back to this.
Yes, I know I have to transfer, not withdraw. I need to read your replies more carefully and make sure I understand about the limits on JISAs.
Thanks again. 

Bunnysmoney

Refluxer; you seem to be saying I can transfer the whole lot (over £10500) into a Cash ISA, and the £9000 limit only applies to money added within the year? Not money transferred from another ISA?
It's in a stocks and shares ISA now.

surreysaver

Bunnysmoney said:

Refluxer; you seem to be saying I can transfer the whole lot (over £10500) into a Cash ISA, and the £9000 limit only applies to money added within the year? Not money transferred from another ISA?
It's in a stocks and shares ISA now.

You have to transfer the whole lot, as you cannot have a Child Trust Fund and a Junior ISA.
The £9k limit only applies to new money, not transferred money