26th October 2015
1st November 2015 marks the 4th anniversary for Junior ISAs
Launched in the United Kingdom on 1st November 2011, the Junior ISA is a child-oriented version of the long-standing and popular ISA. It is aimed at parents, guardians and grandparents who wish to save for a child's future. There are some differences, one being the annual contribution, which is £4,080 for the 2015/16 tax year. However, the ISA advantages of no capital gains tax and no further liability to income tax are the same.
Who is eligible?
Junior ISAs are available for any child who is resident in the UK. If the child already has a Child Trust Fund (CTF), they cannot have a Junior ISA as well, but they can have their CTF investment transferred to the newer product.
How much can I invest?
The current annual limit is £4,080. Contributors can either invest lump sums or make regular monthly savings.
To give you an idea as to how much could be saved on behalf of a child, a monthly contribution of £50, assuming 7% growth per annum, could provide a pot of over £21,000 over 18 years. A monthly contribution of £300 could grow to almost £130,000.
For more information, read FundCalibre’s guide to Junior ISAs here.
Unsure where to invest?
The top ten most popular Elite Rated funds for Junior ISAs this year* are:
- CF Woodford Equity Income
- Liontrust Special Situations
- Rathbone Global Opportunities
- M&G Global Dividend
- Marlborough UK Micro Cap Growth
- M&G Global Emerging Markets
- Fundsmith Equity
- Schroder Asian Income
- Artemis Global Income
- Henderson Cautious Managed
*Investments made through FundCalibre’s sister company Chelsea Financial Services between 01/01/2015 and 23/10/2015
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