Government launches junior ISA for children

first_img Government launches junior ISA for children Tags: NULL Share whatsapp THE government yesterday said it would introduce a new tax free savings account for children, to replace the child trust fund it scrapped when it came into office. Funds in the so-called “Junior ISA” will be deposited by parents, but the account will be owned by the child and will be locked until they reach adulthood. The accounts are expected to be available from autumn 2011. Investments can be made in both cash and stocks and all returns will be tax free, but annual contributions will be capped. The government has not yet decided the annual contribution cap, although Treasury sources indicated it would likely be the same as that for an adult individual savings account (ISA).In 2011-12, adult investors will be able to put £10,680 in an ISA, after the limit rose by £480 in line with inflation. Unlike the child trust fund, which will be scrapped in January 2011, the government will not make any contributions to the account. Mark Hoban, financial secretary to the Treasury, said: “The introduction of this new account means that we can still offer people a clear way of saving for their children, while saving the half a billion pounds a year that we currently spend on Child Trust Funds.” Show Comments ▼center_img KCS-content Tuesday 26 October 2010 8:34 pm whatsapp Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap last_img