April marks the start of the new tax year and that brings great news as the annual tax-free ISA allowance starts again and it’s not just adults who can benefit. Chris Sadler, independent financial advisor with Jones & Co, is keen to make sure parents, grandparents and guardians are aware of the products, such as a Junior ISA, available to provide a tax-free nest egg for their children in the future.
“You’re never too young to start saving and, if you have children or grandchildren, the Junior ISA is aimed at encouraging long-term tax-free savings”.
“A Junior ISA can be opened on behalf of anyone who is under 18 and a UK resident. The annual contribution limit for 2018/19 tax year is £4,260 and can be funded by anyone. There will be no tax to pay on any interest or gains. Providing the overall limit of £4,260 is not exceeded, the child can invest in cash, stocks and shares or both”.
“The Junior ISA must be opened by either a parent or guardian, although the child becomes the owner of the money at age 16 and can withdraw the funds when they reach 18, at which time they can decide what to do with it. If they decide to leave it invested, it will automatically become an Adult ISA”.
“Whether it’s funding further education at university, buying their first car or as deposit on their first home, taking out a Junior ISA today could make a world of difference to your children in years to come.”
For more information on Junior ISAs or ISAs in general, why not arrange a free consultation with Chris? Call us on 01246 550521 or email chris@ifajonesandco.uk to set up an appointment.