Junior ISA.

The Government has introduced a new tax-free savings account for children, known as Junior ISA - they're a great new way to save for your children. We’re launching our stocks and shares Junior ISA in Spring 2012 (in the new tax year). It will offer all the tax-efficiency of an adult stocks and shares ISA – meaning no personal tax on any income or profit earned has to be paid – but it's designed especially for children.

Benefits of a Junior ISA

• Parents, family and friends can contribute to the Junior ISA, up to £3,600 in each tax year.
• The money is locked away until the child becomes 18, when the Junior ISA can be rolled up into an adult plan.
• If your child missed out on the Child Trust Fund, they should qualify for the Junior ISA.

It will be possible to make a combination of both regular and lump sum payments into the account, provided these don’t exceed the annual allowance of £3,600 in each tax year.

The value of an investment may fall as well as rise and your child may get back less than invested.

The tax assumptions we’ve used are those currently relevant. However, tax laws can change over time and can affect an investment. The value of the tax benefit will depend on individual circumstances.

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