Junior Stocks and Shares ISA. Next generation planning at Netwealth
Secure a brighter financial future for your child with a junior isa and tax-free savings
Open a Junior ISAWhat is a Junior stocks and shares ISA?
A Junior ISA (JISA) lets you save and invest up to the annual limit of £9,000 without paying tax on the interest or gains. This tax-free savings account shields your child’s investments from UK income tax and capital gains tax, allowing all returns to grow untouched by tax burdens.
Normally, savings that earn over £100 in interest per year would be taxed at the parent's rate, but a JISA ensures all interest and gains are protected, maximising your child’s savings potential.
The Stocks and Shares Junior ISAs invest in the stock market and offer potentially higher returns but with increased risk. Netwealth allows you to choose from a range of different portfolios for your Junior ISAs based on your comfort with risk and the financial goals of your child.
Why choose a Newealth stocks and shares JISA?
A Netwealth Junior ISA offers parents an excellent way to maximise their child’s savings with tax-free benefits and expertly managed investment options.
As a leading junior ISA provider, we help you make the most of your child’s junior ISA allowance, ensuring their savings grow free from UK income tax and capital gains tax. Here's why choosing Netwealth is the right step for your child's financial future:
Benefits of a Netwealth Junior ISA and GIA
Netwealth's Junior Investment Accounts offer both Junior ISAs and Junior GIAs, making it easy to start saving for your child's future. These accounts are straightforward to set up and manage online, providing convenience and flexibility for busy parents.
Tax-free growth
Netwealth’s Junior ISA ensures your child’s savings grow free from tax on interest or gains, allowing your returns to accumulate more efficiently over time. This tax advantage helps maximise the growth potential of your child's savings, providing a solid financial foundation for their future. With no capital gains tax or income tax on returns, your child benefits fully from the growth of their investments.
Flexible contributions
We offer flexibility with a Junior ISA and Junior GIA, allowing parents, grandparents, and other trustees to invest for the child’s benefit. Junior ISAs have an annual contribution limit of £9,000, while Junior GIAs have no contribution limits, making them ideal for additional savings beyond the Junior ISA allowance. Funds in a Junior GIA can be accessed by trustees at any time for the child's needs, offering adaptable savings solutions tailored to individual circumstances.
Online convenience
Our digital platform offers a seamless experience for managing your child's savings. Setting up the account, selecting investment options, and monitoring performance can all be done online in a few simple steps. The platform provides full visibility of the account, enabling you to track the growth, make regular payments, and adjust investment strategies as needed, all while enjoying the peace of mind that comes from expert management.
Ethical investment options
We'll help you secure your child's financial future with minimal environmental impact. Our socially responsible investing (SRI) portfolios exclude companies involved in harmful industries like fossil fuels, tobacco, and weapons, and focus on those with high environmental, social, and governance (ESG) ratings.
These portfolios are designed to offer strong financial returns while supporting positive social and environmental outcomes. We ensure they're cost-effective and managed to the same high standards as our core portfolios.
Easily transfer your existing Junior ISA to Netwealth
Transferring your existing Junior ISA or Child Trust Fund to Netwealth is straightforward and cost-free. Simply download and fill out the transfer form and submit it to us. Netwealth will then contact your current provider, sell your existing investments, and transfer the cash proceeds to your new account, with the funds reinvested into your chosen strategy within 24 hours.
Under Netwealth, your child's transferred savings will benefit from expert management and investment growth potential.
Supported by cutting edge online tools
Netwealth offers a seamless, fully digital experience for managing your child’s savings. From account setup to ongoing management, parents can easily track performance, make regular payments, and adjust investment strategies through Netwealth’s online wealth service and mobile app.
The platform also features a suite of planning tools, such as the ‘Tax Allowances and Services’ dashboard, which helps you keep track of remaining allowances and optimise contributions throughout the tax year. These tools support parents in making informed decisions, offering detailed insights into projected returns and helping you plan for key financial milestones like your child's 18th birthday or educational expenses.
Get the family involved with Netwealth
With Netwealth's Junior ISA, you can invite friends and family to contribute to your child's savings, fostering a collaborative approach to building their financial future.
Anyone can make contributions, not just the account holder, as long as the total does not exceed the annual limit of £9,000. This enables loved ones to add to your child’s Junior ISA, helping the funds grow faster and making the savings journey more meaningful.
Insights
Netwealth JISA FAQs
Do you offer a Junior ISA?
Yes, we offer Junior Stocks and Shares ISAs. Only a parent or legal guardian can open a Junior ISA in the name of a child. The person opening the account will be the registered contact and will be responsible for how the money is invested.
Although the Junior ISA must be opened by a parent or legal guardian, anyone can make a contribution as long as the total does not exceed the annual limit which currently stands at £9,000 per tax year.
Can I transfer an existing Junior ISA to Netwealth?
Once you have opened your Netwealth Stocks and Shares ISA, you can easily transfer one or more existing ISAs to us. Our client service team will send you a pre-filled form to complete and once received will take care of contacting your current providers.
Can I transfer a Child Trust Fund to Netwealth?
Yes, as a child cannot cannot hold both a Child Trust Fund and a JISA, if they have a CTF this will need to be transferred to Netwealth where it will become a Stocks and Shares JISA.
Our client service team will send you a pre-filled form to complete and once received will take care of contacting your current provider.
What happens to the Junior ISA when my child turns 18?
You cannot withdraw funds from a JISA. Once your child turns 18, we will invite them to open an ISA with Netwealth and their JISA will be converted into this adult ISA. They will then have full access to their ISA and may withdraw from it if they wish to.
Do you offer Junior SIPPs?
Not at present but it is something that we are looking to add to our product offering.
What is a Junior GIA or Bare Trust?
Junior GIAs offer a more flexible way to invest on behalf of your child than a Junior ISA. Unlike a Junior ISA, there's no limit to how much you can contribute to a Junior GIA or how many you can open on behalf of your child.
The money held within a Junior GIA can also be accessed by the trustees at any time for the benefit of the child (e.g. to pay for school fees).
Are they taxable?
Although returns with a Junior GIA are taxable, you may be able to use the trust to make use of your child’s annual tax allowances for both income and capital gains. This is usually the case if the settlor of the trust is anyone other than the child’s parents, for example a grandparent.
As with a JISA, from an inheritance tax perspective, contributions to a Junior GIA could be counted as regular gifts out of excess income and so the capital would be outside your estate immediately.
What happens to the Junior GIA or Bare trust when my child turns 18?
At the age of 18, the Junior GIA can easily be converted into a regular GIA to ensure they remain invested. This can remain as a Bare Trust managed by the parent or trustees if the child agrees to this in writing once 18.
Can I withdraw funds from a Junior General Investment Account (Bare Trust)?
Yes, you can withdraw funds if you are the appointed trustee provided they are for the benefit of the child e.g. school fees.
