This page provides information and resources in relation to children’s savings accounts, namely Child Trust Funds (CTFs) and Junior ISAs (JISAs).
Within this page, you can access useful information on CTFs and JISAs, including TISA’s events and training, up to date news and relevant publications.
Members of TISA have access to additional information including TISA technical bulletins for children’s savings. Additionally members can access consolidated ISA regulations and guidance produced by TISA, a database of ISA qualifying investments and frequently asked questions on a variety of ISA topics, many of which will also apply to JISAs.
Both products are savings vehicles for children. The Child Trust Fund (CTF) was opened for children born between the 1st September 2002 and 1st January 2011. The Junior ISA (JISA) was launched later that year to replace the CTF for children born from 1st January 2011 but didn’t benefit from any government contributions. A child can have only one or the other.
The investment limit as at 2019/20 tax year for both products is the same at £4368 and is reviewed annually. More details of each product type are provided below.
Both products offer investment into either a cash or investment type.
From 6 April 2015 it has been possible to transfer a CTF into a JISA.
Launched in 2005, with all children born on or after 1 September 2002 benefiting from one. The account was opened with a £250 donation from the government, through a voucher provided to the parents. If the parents had not opened an account after a year then HMRC (HM Revenue & Customs) would open one on the child’s behalf through one of the numerous firms registered to accept them. These are known as Revenue Allocated Accounts (RAA). Lower income families also received an additional £250.
Initially, children were due to receive a further payment of £250 on reaching age 7. From August 2010 through to its closure the opening contribution was reduced to £50. Lower income families contribution was reduced to £100 (£50 plus £50 additional contribution) in total. Age 7 payments were stopped from August too. This means age 7 payments were only made for children reaching 7 between 1 September 2009 and 31 July 2010. Some 6m accounts were opened during this time with approximately 1.5m of these being RAA.
Although the amount you can invest into a CTF is the same as a JISA and is reviewed each tax year, the annual contribution limit runs from birthday to birthday not the standard 6 April to 5 April.
Wales introduced a £50 payment for children living in Wales which had to be claimed by the parents. Low income families would receive an extra £50. This lasted for approx 2 years between Autumn 2009 and 31 January 2011.
The first Child Trust Funds mature from September 2020 with the final ones due to mature in January 2029. Details of how the industry might handle this and the final regulations etc are still being drafted and should be available in Summer 2019. A working party has being established to work with HMRC in order to help make the introduction of the regulations as smooth as possible.
TISA is working with members and CTF providers in order to maximise the number of children reaching 18 being able to access the CTF maturity funds. The most vulnerable of these children will be those where the account was opened by HMRC on behalf of the child either because the parent had not done so or the child was in care. Statistics gathered through providers suggest that there are over 800k of these accounts where the address is not known. Work continues to explore how these addresses and children can be reunited before maturity.
One such activity being promoted is through The Share Centre where individuals are asked to be ambassadors for the CTF, going into schools and bringing to the attention the impending maturities to the children. More details can be found here.
The Child Trust Fund is regulated under its own specific legislation independent of the Individual Savings Account.
The Junior ISA (JISA) was the replacement to the Child Trust Fund and was launched on 1 November 2011, available for any child under the age of 18 who does not have a CTF. Unlike the CTF it does not benefit from any government contribution but relies on family and friends to make investments.
It sits within the ISA family of products and is regulated as part of the ISA regulations.
On reaching 18 the JISA automatically rolls over into an adult ISA and becomes subject to the usual ISA rules. The value does not contribute towards that year’s ISA allowance.
Use the links below to access statistics produced by HMRC and charts and tables produced by TISA.
HMRC produce specific guidance notes that help authorised ISA/JISA managers adhere to the ISA regulations. This guidance is generally the first reference point for ISA/JISA managers. The guidance is updated on a regular basis and is available on the GOV.UK website. HMRC also issue ongoing ISA Bulletins which go hand in hand with the ISA Managers’ Guidance.click here
HMRC produce specific guidance notes that help authorised CTF managers adhere to the CTF regulations. This guidance is generally the first reference point for CTF managers. The guidance is updated on a regular basis and is available on the GOV.UK website. HMRC also issue ongoing CTF Bulletins which go hand in hand with the CTF Managers’ Guidance.click here
Access to the information in this area of the website is only available to TISA member firms. It provides access to regular children’s savings related technical bulletins on a range of issues and to ISA materials that will also apply to JISAs, including consolidated ISA regulations and ISA Managers’ Guidance, lists of ISA qualifying investments, frequently asked questions from the industry on CTF/JISAs and access to TISA’s technical support.
TISA provides member firms with regular technical bulletins which help CTF/JISA managers stay abreast of any developments and changes. The updates provided in these bulletins inform member firms about government proposals, changes to the ISA regulations, amendments to the ISA Managers’ Guidance or provide feedback resulting from TISA’s correspondence or discussions with HMRC or HM Treasury (HMT).
View a list of CTF/JISA bulletins below or use the options provided to search by keyword or date or to browse our full list of CTF/JISA bulletins.
Use this link to access and search a list of specific investments where their ISA qualifying status has previously been queried with TISA and see the feedback provided in relation to each investment.ISA Qualifying investments
TISA maintains, for its members, a set of consolidated ISA regulations reflecting each change to the Statutory Instrument and a downloadable copy of the HMRC ISA Managers’ Guidance
TISA receives a significant number of technical queries from member firms covering all aspects of the CTF/JISA rules. TISA member firms have access to this facility which provides a comprehensive and up to date summary of many of the key questions that are received from members.ctf/jisa faq
Member firms can get in touch with our technical team for assistance with their ISA queries by clicking the link below.Technical help