Tax-free allowance of up to £3,840 for 2014/15

Junior ISA

On 1 November 2011, the Junior ISA was launched and became available to all children resident in the UK under the age of 18 who did not already have a Child Trust Fund (CTF). Parents and grandparents can open a Junior ISA for their child or grandchild at birth and contribute to it each year.

ISA Risks

Governments can and do change the rules on tax efficient vehicles, like ISAs.

  • An ISA is not a risk free product and the value of your ISA investment may be at risk due to the investments held within the wrapper.
  • The market price from fixed income investments can fall below the face value during the life of the investment and the money you invest may be at risk if the issuer defaults.
  • ISAs can grow but depending on market conditions you may not realise the initial sum invested. There is no guarantee that you will get more out of an ISA investment than you have paid in.
  • If you leave the UK and are no longer a UK resident then you can keep the ISA investment but you can’t make any new contributions to the ISA.
  • ISA investments are liable to Inheritance Tax on death. Income Tax deducted at source on foreign dividends may be recoverable, but the tax credits attaching to UK dividends are not. There are no further Income Taxes to be paid on investments held within an ISA.