JISA to adult ISA transition period – tune in
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JISA to adult ISA transition period – tune in
JISA to adult ISA transition period – tune in
Currently a Junior Individual Savings Account (JISA) can be held by a child until the day they turn 18, the annual allowance for which is currently £9,000. On their 18th birthday, the child can open an adult stocks and shares ISA, the annual subscription which is currently £20,000. All pretty straightforward.
Now, for the interesting part – at present a child can open an adult cash ISA when they turn 16, benefiting from the full £20,000 adult allowance – a child can hold an adult cash ISA alongside a JISA whilst they are under 18.
So, with current allowances, a total of £29,000 can be paid into their ISAs in one tax year. Repeatable in the tax years they turn 17 and 18, contributions totalling £87,000 can be made in under three years.
It’s a wrap
For people looking to put money aside for their children or grandchildren, there are interesting tax wrapper opportunities out there. Now, that’s worth considering, isn’t it?
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Information is based on our understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Tax treatment is based on individual circumstances and may be subject to change in the future.
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