For any doctors out there that set-up Child Trust Funds for their children good news!
Whilst the subscription limits remain unchanged and are the same for both of the products, the ability to transfer an existing CTF into a JISA will provide a wider investment choice, possible higher interest rates on cash accounts and, in some cases, lower fund management charges.
It also means that the JISA will automatically turn into an adult ISA when the child attains age 18.
For information on Junior ISA options get in touch on firstname.lastname@example.org or telephone 0117 9665699.
Financial Planning For Doctors Using The Junior ISA
Use of the Junior ISA should be considered for any doctors looking to structure a tax efficient savings strategy for their child. There is generally no access permitted before 18 and therefore the Junior ISA is likely to form an essential part of funding for the ever increasing costs of higher education.
So What Is A Junior ISA?
The Junior ISA is a new tax advantaged account for saving for children. Junior ISAs are available for any UK-resident child under the age of 18.
Junior ISAs have many features in common with existing adult ISA products which many doctors will already be very familiar with. They are available as a cash or a stocks and shares investment.
Opening and Operating a Junior ISA Account
An account can be opened by a parent of the eligible child or a child themselves if they are 16 or over.
This parent or child of 16 years of age then becomes the registered contact on the account and is the person able to give instructions to the Junior ISA manager.
The maximum investment in a Junior ISA is now £4,080 for tax year 2015-16.
There are no withdrawals allowed from the Junior ISA before the age of 18 (apart from management charges or if the child dies or becomes terminally ill).
Attaining Age 18
When the child becomes 18 years of age the account manager will automatically switch the Junior ISA into an Adult ISA.
For more information on Junior ISA options please send an email to email@example.com or telephone 0117 966 5699.