The information contained within the following news articles have been pre published. The articles were published on the dates indicated and the information contained within these issues include references to taxation, legislation, regulation and other issues or concerns that may no longer apply
Jisa you is or Jisa you aint
Ok, so we haven’t yet even enjoyed the splendours of summer, but if you are a financially canny parent, you may already be looking forward to this autumn.
That’s when a new savings scheme is being launched that will allow up to six million children to enjoy similar tax breaks to their parents.
The Junior Isa, or Jisa, will be a micro version of the full adult account. It means that your under-18s will be allowed to have up to £3000 a year saved on their behalf, a move that could help them, and you, build up a fund for future university fees or a house deposit.
The Junior Isa account has been brought in to replace the Child Trust Funds introduced by the previous Labour government. At present, those who already have a CTF can continue saving into it until 18. The annual contribution limit will be raised from £1,200 to £3,000 in line with Jisas.
At present, children can earn only £100 in interest on money given to them by their parents. Jisas will make it easier for parents to give to their children, as funds in a Jisa will not count towards this limit. However funds are locked in until 18, so you may also want a more accessible form of savings for your offspring. Parents keep control of where the money is invested until 16, after which the child takes charge for the final two years.
Here at Census Financial Planning, we’re encouraging our clients to take a balanced view of the new Jisa. With many household budgets being squeezed, every pound saved for a child is a pound that cannot be used to meet other immediate parental needs. Sometimes it may be best to save in the parents’ own name, and give the money to children as and when they need it.
For a full appraisal of the best financial planning options for your children call, our team at Census today on 028 9066 8700.