How you can take advantage of the loophole around the Junior ISA!
This article is for information only and no recommendation is being made or should be construed from the contents of the article. Always seek independent financial advice prior to taking any action.
Under-18s born on or after 3 January 2011, or before September 2002, qualify for a Junior ISA (JISA), which means they can save or invest up to £4, 128 in the 2017/2018 tax year. The youngsters can put as little or as much of the £4,128 allowance as they wish into a JISA.
However, on top of this, an adult cash ISA can be opened from the age of 16 with an annual allowance of £20,000, and currently there are no rules against having taking up both – meaning that between the ages of 16 and 17 they get two ISA allowances totaling £24,128.
There is only a small 2 year window to take advantage of this loophole as once the child turns 18, their Junior Isa automatically converts into an adult Isa and they will be restricted to the £20,000 limit.
This anomaly is definitely a bonus for parents looking to put money aside for their children’s university education and benefit from the tax efficiencies.
And don’t forget, to make investing in an ISA far simpler we now have our new online investment service. This will minimise your fees as there are no upfront broker costs – and you can do this from the comfort of your own home and you will have complete control of your investments.
From registration, our service will take you through a brief risk analysis so that we can provide the ideal recommendations to suit your requirements and expectations. You can then modify your investment selections until you are happy – the whole process is simple and efficient. Have a look at our new service on our website.
Or if you would like to speak to one of our Financial Advisors on how you could take advantage of the Junior ISA loop hole call us on 01892 300303.