Tax Free Junior ISA announced by GovernmentPosted by Steven Keogh
The UK coalition government has annouced plans to introduce a new ISA for children know as a ‘Junior ISA’.
This will replace the ‘Child Trust Fund’ and is to encourage parents to help their children save for their future.
Parents will be able to pay in a capped amount each year which can either be cash, stocks or shares just like with a normal adult ISA (Individual Savings Account) and the child will not be able to receive the funds until they reach adulthood.
It is predicted that education costs such as going to university and also house prices are to continue rising so it is important to help your child to have some savings which can then go towards their university fee’s or help them onto the property ladder.
Unlike the Child Trust Fund, the government will not be making any contributions towards any Junior ISA accounts which has resulted in complaints from many people.
It is believed that only weather families will be able to afford it whilst lower income families will be excluded.
The government is expecting to save around half a billion pounds by scrapping the Child Trust Fund in favour of a tax free junior isa