Junior ISA

The Junior ISA is a version of the long-standing and popular ISA but aimed at parents, guardians and grandparents who wish to save for a child’s future. There are some differences, one being the annual allowance, which is £9,000 for this tax year. However, the ISA advantages of no capital gains tax and no further liability to income tax are the same.

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Important Information

Please remember that the value of investments will fluctuate and returns may be less than the amount originally invested. Tax treatment depends on your individual circumstances and the ISA and tax rules can change. Whilst we may draw attention to certain investment products, we cannot know which of them, if any, is best for your circumstances and must leave that judgement to you. If you are unsure about the suitability of any investment you should seek professional advice.

Junior ISA rules

There are some rules that you, the registered contact should be aware of before opening a Junior Stocks and Shares ISA.

  • Current allowance: £9,000

  • The child must be under 18 years of age

  • You and the child must be a UK resident

  • You cannot invest more than the allowance in any given tax year

  • A child can only have one Junior ISA at a time. If you would like to transfer a Junior ISA to Chelsea please contact us on 020 7384 7300

  • When the child turns 16, they can manage the account, but cannot withdraw any money

  • When the child turns 18, the account will roll over into an adult ISA and become legally theirs

  • Only under special medical circumstances can you withdraw from a Junior ISA before the child turns 18

  • If the child was born between 2002 and 2011, they might have a Child Trust Fund (CTF). These can be transferred to a Junior ISA. Please note that a child cannot have both a CTF and a Junior ISA. If you would like to transfer a CTF to Chelsea, please contact us on 020 7384 7300

Benefits of a Junior ISA

In this day and age, the expense doesn’t end when your child reaches adulthood. More and more, the bank of mum and dad is being asked to help out with the significant financial pressures young adults are facing. The spiralling cost of university fees, driving lessons, gap years, first steps onto the property ladder, and so on, soon add up.

It’s a huge amount of money and can seem an unachievable goal. The key is starting early and using all the investment tools and help available to you. With the benefit of compounding, a small contribution started early enough can work miracles.

Learn more

Where to invest?

In the UK alone, there are over 3,000 different funds to choose from, so choosing the right one can feel daunting.

At Chelsea, we have a number of different options.

Find out more

FAQs

  • Find out more about our charges here.

  • In order to open a Junior ISA, please complete a Junior ISA application form and return it to us here in the office. When investing on the Chelsea Platform, payment can be made by bank transfer, or by cheque. Cheques should be made payable to ‘Platform One’. When investing on Aegon, cheques should be made payable to ‘Aegon’.

    The registered contact must be a parental guardian of the child, however, as a family member or friend, you can invest in the Junior ISA as the third party on the form.

    A Junior ISA can be opened for a child until they reach 18 years of age, when the money is officially transferred to them. The Junior ISA allowance is £9,000.

    If the child was born between 1st September 2002 and 4th January 2011 they would have qualified for a Child Trust Fund. Currently, a child cannot hold both. The government has decided that, as of April 2015, the funds held in a Child Trust Fund can to be transferred to a Junior ISA.

  • You will need to complete an transfer form. This will either be an ISA transfer form, or a GIA transfer form, depending on the type of account you hold with your current provider.

    Once you have completed this form, please return it to us at: Chelsea Financial Services, St James Hall, Moore Park Road, London, SW6 2JS

    Alternatively, you can request forms be sent by calling our freephone brochure line on 0800 071 3333.

    Once we have received the completed transfer form(s), we will contact your current provider to transfer your funds across. You will receive notification once the transfer is successful.

  • You can invest with an initial lump sum, and then top up at a later date.

    There are three ways to top-up your ISA:

    • Online
    • Call Chelsea on 020 7384 7300 to invest
    • Fill out an application form and return it to us at: Chelsea Financial Services, St James Hall, Moore Park Road, London, SW6 2JS. Please note that if you are sending a cheque, these should be made payable to ‘Platform One’, when investing on the Chelsea Platform and ‘Aegon’, when investing on Aegon.

  • There are a number of ways to switch funds:

    • Log in to your account and select the funds you want to switch out of and then choose those into which you wish to invest
    • Call Chelsea on 020 7384 7300
    • Fill out a Switch instruction form

    Please note that if you are switching a Junior ISA, on Aegon, we will need an instruction from the registered contact to proceed.

    Chelsea does not charge for switching between funds.

  • Chelsea Platform

    There are a handful of ways that you can set this up:

    • Online
    • Call Chelsea on 020 7384 7300
    • Fill out an application form and return it to us at: Chelsea Financial Services, St James Hall, Moore Park Road, London, SW6 2JS

    Please note that in all of these scenarios, you will be required to set up a standing order with your bank. The bank account details to use are:

    Payee name: Platform One Limited P1 Investment

    Account number: 03692671

    Sort code: 40-05-30

    Reference: Please use your ACN number when making the payment. We kindly ask you to let us know when you have set this up, along with your investment decision(s), so that we can set up the investment element for you.

    Aegon

    There are a handful of ways that you can set this up:

    • Online
    • Call Chelsea on 020 7384 7300 to set up a direct debit mandate
    • Fill out an application form and return it to us at: Chelsea Financial Services, St James Hall, Moore Park Road, London, SW6 2JS

  • When you initially open an account, we have to run verification checks. This can sometimes take a day or so to complete (and longer, if we need to reach out to you to provide further information).

    An investment usually takes around 24 hours to appear on your account. Our systems update overnight, so if you have made an investment before 10:30am, you will be able to see the funds the next day.

    However, if you have made an investment after 10:30am, your investment will update and be shown the following day.

    If you have any queries about this process, please do not hesitate to contact us in the office. We are more than happy to check for you, to put your mind at ease.

  • There are three ways to top up your investment(s), through Chelsea.

    1. Online – if you are investing on Chelsea Platform, you will need to make payments by bank transfer. If you are investing on Aegon, you can use a debit card, but please note that you will need to pass a second factor authentication, that will be set up directly with your bank.

    2. Call Chelsea on 020 7384 7300

    3. Fill out an application form and return to us at: Chelsea Financial Services, St James Hall, Moore Park Road, London, SW6 2JS. Cheques should be made to ‘Platform One’, if investing on the Chelsea Platform and ‘Aegon’ when you are investing on Aegon.

    You can also invest via ourselves directly into a fund provider’s investment fund either over the telephone or via application form. However, due to increased administration costs, this is less cost effective for investors. For an application form please call our 24 hour free brochure helpline on 0800 071 3333.

  • Please contact us on 020 7384 7300 to register for online access.