Junior ISAs announced for children
The Government has announced that they are to create a new tax-free children’s savings account. The new accounts, described as ‘Junior ISAs’, will offer parents and grandparents a simple and tax free way to save for a child’s future.
The new accounts will have the following key features:
- All returns will be tax free
- Funds placed in the accounts will be owned by the child and will be locked in until the child reaches adulthood
- Investments will be available in cash or stocks and shares
- Annual contributions will be capped
- There will be no Government contributions into the accounts
The Government hopes that Junior ISAs will first become available in Autumn 2011. In the meantime the Government intends to work closely with stakeholders to finalise the structure of the accounts.