Draft regulations on junior ISAs

31 March 2011

On 26 October 2010 the Government announced that it would create a new tax-free children’s savings account, referred to as Junior ISAs.

Press notice: Financial Secretary to the Treasury announces new tax-free savings account for children

Junior ISAs will ensure that all parents have a clear and simple way to save for their child’s future, following the end of Child Trust Fund (CTF) eligibility from January 2011.

Junior ISAs are expected to be available from autumn 2011. Ahead of this, the Government will make detailed Regulations, amending the existing ISA (Individual Savings Account) Regulations, to provide for the establishment of Junior ISAs.

Junior ISAs: Draft regulations - 31/03/2011 (PDF 782KB)

Draft Regulations were published for comment, alongside the Finance Bill on 31 March 2011. These propose that Junior ISAs will have the follow key features:

All UK resident children who do not have a CTF will be eligible for Junior ISAs.
All returns will be tax-free.
Both cash and stocks and shares Junior ISAs will be available. Children will be able to hold up to one cash and one stocks and shares Junior ISA at a time. There will be an overarching contribution limit of £3,000 per year.
Accounts will be owned by the child and funds will be locked in until they turn 18.
Junior ISA accounts will by default become adult ISAs on maturity.

The Government welcomes comments on these draft Regulations, and on the design of Junior ISAs generally. The Government intends to make the final Regulations in July 2011.

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