A Junior ISA is a tax-efficient children's savings account. There's no personal income or capital gains tax to pay on the growth in the account value. Junior ISAs replaced the Child Trust Fund (CTF), but there is no government payment into Junior ISAs.
Any child who is resident in the UK, is under 18 years old and who doesn't have a CTF can have a Junior ISA. This will mean children born on or before 31 August 2002 and children born on or after 3 January 2011.
Anyone with parental responsibility for the child or the child themselves if they are age 16 or over. This person is known as the registered contact.
Parental responsibility means the child's natural or adoptive parent, or who has been granted parental or formal legal responsibility for a child.
The registered contact is the only person who can give investment instructions for the Junior ISA. All communications related to the account will be sent to the registered contact.
There are two types of Junior ISA: a Stocks and Shares Junior ISA and a Cash Junior ISA.
A Stocks and Shares Junior ISA is a long-term investment so it is suitable where the money will be invested for five years or more. These ISAs give you access to a wide range of investment types such as equity funds and investment trusts. J.P. Morgan Asset Management offers a range of investments for you to choose from.
Only a person with parental responsibility can open a Junior ISA on behalf of a child. Once an account has been set up, anyone can contribute using the Friends and family Junior ISA contribution form (2014/15) - parents, family members or friends. Any contributions are a gift to the child and can't be accessed by the child until they are 18, unless they die or become terminally ill before that age.
Please note that we cannot accept cheques from family or friends until 15 days after the Junior ISA has opened, and after the registered contact has made an initial contribution. Cheques received before the registered contact has made a contribution, or during the first 14 days will be returned. The registered contact is the only person who can give investment instructions for the Junior ISA and all communications related to the account will be sent to the registered contact.
If you change your mind you can cancel the Junior ISA account within 14 days of the first payment being made. If you cancel within this period we'll refund the value of the account at that time. This may be more or less than the amount invested. After that, the value of the account can only be accessed by the child when he or she reaches age 18.
A child can have one Stocks and Shares Junior ISA and one Cash Junior ISA. Investments can be made into one or both plans but the total paid into all plans can't be more than the Junior ISA allowance for that tax year – currently £4,080 in 2015/16.
The J.P. Morgan Stocks and Shares Junior ISA offers a wide investment choice, including:
You can set up a regular Direct Debit or make one-off payments at any time. What's more, with your J.P. Morgan WealthManager+ account, you can check transactions and manage your account online 24/7.
Yes, you can transfer Junior ISAs between providers. You can also transfer money from one Junior ISA type to another, e.g. from a Cash Junior ISA to a Stocks and Shares Junior ISA. From 6 April 2015, you can transfer a CTF to a Junior ISA. However please note that J.P. Morgan does not offer this transfer option.
Only the child named as the holder of the Junior ISA can access the money when they reach 18, unless they die or become terminally ill before that age.
If you're not sure that a stocks and shares Junior ISA is the right investment for you, speak to a financial adviser.