For advice on accessing pension benefits, contact the government’s free and impartial guidance service Pension Wise.

Freedom Junior Individual Savings Account (ISA)

 

The Freedom Junior ISA is a Stocks and Shares ISA and is a tax-efficient way to build up savings on behalf of a child under 18 years of age.

 

All investments carry an element of risk which may differ significantly. If you are unsure as to the suitability of any particular investment or product, you should seek professional financial advice.

 

Who can use it?

The Freedom Junior ISA is opened and managed by a parent or guardian on behalf of a child under the age of 18. The child must live in the UK, but the person making contributions to their Freedom Junior ISA does not need to be a UK resident.

Please note we do not accept applications on behalf of individuals who are US persons for tax compliance purposes.

 

Can I consolidate savings from other Junior ISAs?

Yes, we will be pleased to provide you with assistance to consolidate your child’s Junior ISA holdings into one Freedom Junior ISA. We recommend that before doing so you seek financial advice.

 

Are there limits around how much I can contribute?

You are free to contribute as much as you like whenever you want to, subject to HMRC limits.

The maximum subscription limit for this tax year (2016/17) is £4,080. The minimum lump sum contribution to the Freedom Junior ISA is £250 while the minimum lump sum top-up is £100. In addition, the minimum monthly contribution is £50 per month.

 

Is there a limit to the size of fund I can build up?

No, there is no limit to the size of fund you can build in a Freedom Junior ISA.

Please remember the value of your investments and any income from them can go down as well as up and you may get back less than the amount you originally invested.

 

What investments are allowed?

With a Freedom Junior ISA your child can invest into pre-selected fund ‘models’ that reflect your preferred investment approach or you can choose a unit trust or open-ended investment company (OEIC) as long as it qualifies for Junior ISA investment.

 

Where are these investments held?

All assets in your child’s Freedom Junior ISA are held for the child’s benefit by our nominee company, Avalon Investments (Nominees) Services.

 

How do I get my money out?

Normally withdrawals cannot be made before the child reaches the age of 18.

 

Is it tax-efficient?

A Freedom Junior ISA is a tax-efficient way of building your child’s savings.

Dividends on UK shares and income from interest-bearing investments such as corporate bonds and gilts are tax-free if paid in the Freedom Junior ISA

When your child decides to take money out of their Freedom Junior ISA there is no Capital Gains Tax to pay.

Laws and tax rules may change in the future without notice. The information here is based on our current understanding of the tax rules. This information takes no account of your child’s personal circumstances which may have an impact on tax treatment.

 

Who administers my child’s plan?

The plan will be administered at our offices in Tetbury, Gloucestershire. We provide a friendly and personable service where you can speak directly to the team managing your child’s plan.

 

How much does it cost?

You can find details of the costs in our Freedom Junior ISA fact sheet.

 

Is the Freedom Junior ISA suitable for me?

Avalon is the administrator of your child’s plan. We are not authorised financial advisers and cannot provide you or your child with advice about their ISA or their investments. You should take financial advice from an adviser authorised by the Financial Conduct Authority, the UK regulator of financial services. You can find an adviser at www.unbiased.co.uk

 

Can I apply to you directly?

No, we only work with authorised financial advisers so we can be sure your child’s plan and their investments are right for them.