Range of accounts for investing for children
We offer a Junior ISA, Junior SIPP and Dealing account for children and each has their own pros and cons depending on the reasons for investing for your children and the length of time you are looking to invest:
|Junior ISA||Junior SIPP||Dealing account for children|
|Who is eligible||Child not eligible for a Child Trust Fund, except where CTF transferred when setting up the Junior ISA||Any child||Any child|
|Who can manage the account||Registered contact||As agreed with provider||Trustee|
|How much can be invested pa||£9,000||£2,880 net, £3,600 gross||Unlimited|
|Tax relief on contributions?||No||Yes – 20%||No|
|When can money be withdrawn||No access until 18||No access until minimum retirement age||Money can only be used for child’s benefit. Child entitled to all when 18|
|Is CGT payable||No||No||Yes but your child will have their own CGT allowance|
|Is interest tax free||Yes||Yes||No but your child will have their own personal allowance|
|Is dividend income tax free?||Yes||Yes||No - but your child will have their own dividend allowance|
|Tax payable on withdrawal||No||Yes – first 25% tax free and then at marginal rate||No|
|Charges and rates||See our Junior ISA charges and rates||See our Junior SIPP charges and rates||See our Dealing account charges and rates|
Does your child have a Child Trust Fund? Once they turn 18, their account will mature and they'll need to decide what to do with it. Read more about matured Child Trust Funds.
Remember that tax rules can change in the future and the tax treatment depends on your or your child’s personal circumstances.