Gordon Kearney, Managing Director & Financial Adviser

Junior ISAs

The Junior ISA, which will replace Child Trust Funds (CTFs) which were withdrawn to new investors last year, will become available from the 1st November 2011.  Junior ISAs will extend to under 18s the same tax benefits which parents (and all adults) already enjoy.

Contributions of up to £3,600 a year can be made to cash, stocks and shares, or a mix of the two.  Benefits will not be available until the child reaches age 18.  Anyone under 18 born before September 2002 or after January 2011 (ie: those who do not have a CTF) will be eligible for a Junior ISA (and for those with CTFs, the annual limits are expected to be brought in line).

The Junior ISA could provide a significant step up for children whose family and friends get together for their benefit. Final values will always be subject to the underlying fund(s) in which the monies are invested. However, as an idea of what 18 years of saving might offer, assuming an average of 5% pa (net of charges), that £3,600 pa could leave the lucky beneficiaries with a contribution of over £100,000 towards their world trip, first house or hotly debated tuition fees.

Of course Junior ISAs are just one way of saving for children and other options are available which can retain greater control in the hands of parents / grandparents if you don’t like the idea of 18 year olds being able to do what they will with the capital you have worked hard to build for them!  We would be happy to discuss the options with you to assess the most appropriate strategy.


If you would like to know more about how we as Financial Advisers can help you  with your Investments then visit the Investment Management section of  our website: Investment Management or send us email at: [email protected]

The information contained in our website is for guidance only and does not constitute advice which should be sought before taking any action. The information is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly, no responsibility can be assumed by Fiducia Wealth Management Limited, or any associated companies or persons, its officers or its employees, for any loss occurred in connection with the content hereof and any such action. Professional financial advice is recommended for every case.

Fiducia is a multi award-winning firm of Financial Advisers based in Dedham near Colchester situated in the heart of Constable Country on the Essex Suffolk border. www.fiduciawealth.co.uk

Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Dedham, Colchester, Essex, CO7 6AD.

Fiducia Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority. FCA No. 408210

Gordon Kearney, Managing Director & Financial Adviser