Ctf into junior isa

Hi ALL

New to this website/forum and I am after some help/guidance

I am a higher rate tax payer and my wife is a normal tax payer.

We have had a CTF for a number of years and have aprox £8k saved that we need to transfer to a J ISA. we also have about £2.5k saved in a bank account for our 9 yr old Son.

We save £50 into the CTF and £15 into the bank account per month.

I guess what we are asking is if we transfer the CTF into a J ISA will we have any tax liabilities or implications and how much can we save per year into the J ISA when opened?

Thank you for all your advice in advance

Comments

  • Alexland
    Alexland Posts: 9,653
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    Welcome to the forums,

    There are no tax implications from opening a Junior ISA and asking the provider to transfer in the old CTF account. Make sure your new JISA provider supports the transfer of CTFs as some don't. At that level of contribution you will not exceed the £4,260 JISA contribution limit this tax year.

    https://www.moneysavingexpert.com/savings/child-trust-fund-vouchers

    Before transferring the money from your bank savings or making further regular contributions into the CTF or Junior ISA make sure you are comfortable this is a gift to the child and they will have access at age 18 and could spend the money as they see fit.

    Alex
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