What is a Junior ISA and what benefits does it offer your child?

Junior ISAs (Individual Savings Accounts), or JISAs, were introduced as a replacement for Child Trust Funds (CTFs). A Junior ISA is a tax-free savings or investment account to save or invest in for your child. There are two types of Junior ISA: a Junior cash ISA that pays interest, and a Junior stocks and shares ISA that lets you invest in “qualifying instruments” such as stocks and shares, funds, etc. The interest on cash accumulates on a tax-free basis, as does income and capital gains made on investments…

An ISA account transfer to another ISA provider must be requested at the receiving ISA provider. Please contact the ISA provider you wish to have your account transferred and ask them to contact us via email at isa-transfer@interactivebrokers.com…

Interactive Brokers will automatically convert currencies when trading non-GBP denominated securities. To do this, Interactive Brokers will engage in “spot” currency transactions on your behalf in order to settle your buy orders or convert the proceed of a sell order. Interactive Brokers will base the exchange rate off the spot exchange rate at the time of trade 0.03% fee…

You will need to submit a transfer instruction to Interactive Brokers (via the transfer & pay funding page in Client Portal), and if, in IBUKL’s discretion IBUKL decides to accept the transfer, IBUKL will instruct your existing ISA manager to transfer the investments (where IBUKL supports such investments) and/or cash into your child’s IBUKL Junior Stocks and Shares ISA. Where IBUKL does not support all the investments held at your existing ISA Manager, you can either liquidate these investments yourself prior to submitting your transfer instruction to IBUKL via Client Portal (any cash proceeds of such liquidation will be transferred into your child’s IBUKL Junior Stocks and Shares ISA) or you can instruct IBUKL (as part of your transfer instruction via Client Portal) to do so on your behalf…

You can open a Junior ISA for a child if you’re their parent or legal guardian. The parent or legal guardian opening the account will be the ‘registered contact’, but the money will not be accessible to them and will always belong to the child. The child normally won’t be able to access the money until their 18…

The IBUKL Junior Stocks and Shares ISA has a minimum activity fee of £1 per month.    …

You should use the Interactive Brokers change of registered contact form (via Client Portal) to change the registered contact for an IBUKL Junior Stocks and Shares ISA. The existing registered contact must sign this application to authorise this change unless where certain exemptions apply…

Junior ISAs (Individual Savings Accounts), or JISAs, were introduced as a replacement for Child Trust Funds (CTFs). A Junior ISA is a tax-free savings or investment account to save or invest in for your child. There are two types of Junior ISA: a Junior cash ISA that pays interest, and a Junior stocks and shares ISA that lets you invest in “qualifying instruments” such as stocks and shares, funds, etc. The interest on cash accumulates on a tax-free basis, as does income and capital gains made on investments…

Where such a situation arises, HMRC regulations require IBUKL to remove the non-qualifying investments from the JISA account within 30 calendar days. To do this IBUKL will open a non-JISA account in your name if you do not have one already open and you may be asked to complete that application…

Examples of non-qualifying investments include warrants or delisted securities. On occasion a corporate action (on a qualifying investment) may result in your IBUKL ISA account holding a non-qualifying investment.

Additional Information…

IBUKL offers a Junior ISA which functions similarly to our Stocks and Shares ISA, except the maximum investment for a Junior ISA in the tax year is £9,000. If you are the parent or guardian of a junior (under the age of 18), you can open them a Junior ISA which can accept contributions from the parents or guardians. The Junior ISA offers tax-free contributions and the ability to invest in eligible worldwide financial products at low commissions while the junior’s investment is locked away until they are 18 years of age…

Interactive Brokers does not charge for transfers (the transferring ISA manager may charge you for transferring investments or cash proceeds to us).

Additional Information…

Under a Junior stocks and shares ISA you can invest in any of the following investments (also known as 'qualifying investments'):

• Shares;
• Securities issued by Companies;…

Your child is eligible for a Junior ISA if they’re under the age of 18, and resident in the UK. You can also open a Junior ISA for your child if you are a crown employee serving overseas.  …

All payments made into a Junior ISA belong to the child (i.e., all payments made into the Junior ISA are a gift to the child and as such cannot be repaid to the subscriber if at a later date the subscriber changes their mind). The parent or guardian who opened the Junior ISA acts as the registered contact, but they cannot access the money once it has been deposited, unless there are exceptional circumstances. …