If you have previously recommended this thread, you should see a tick / check mark on the recommend button. Click the tick to undo the recommendation (the tick may appear to change to a cross as you do this.) If you added a comment with your recommendation, you will need to delete that from your facebook wall separately.
Am a bit confused about junior ISAs and what best to do. DC1 has a CTF which we pay into each month. DC2 could get a junior ISA. Ideally would like them to have the same setup but obviously DC1 cannot have the ISA and DC2 cannot have a CTF.
Is the junior ISA the only way we can do stock and share investments for them? Could I not get the same product but not as an ISA and just sign a tax exemption thing like you do with a bank account. Thus it's not ISA but still tax free. I don't want to do an ISA in my name and give to them later in case we want to use our own allowance. TIA
You can buy unit trusts on behalf of children. I've regularly contributed to this one for DS who was born pre CTF scheme. It's in his name and will mature when he's 18. The tax due on investment trusts or unit trusts is Capital Gains Tax on the increase in value. The thresholds are pretty high .. he'd have to make >£10,000 profit on the investments before CGT applied. Be aware, however, that Unit Trusts and similar stock-market investments are risky in that the value can go down as well as up. Management fees are also charged.
If you started a Junior Cash ISA it would be in his name and you'd still maintain your full personal ISA allowance. Cash ISAs are a relatively safe option
There are few tax advantages to a children's Cash ISA because children's savings can be set up as tax-free as long as the interest earned is below a certain amount. However, some of the interest rates offered are better than ordinary savings accounts available to under 16's. A Junior ISA is the product that has been introduced to replace the Child Trust Fund scheme i.e. a managed fund. These often outperform cash deposits over the long-term and, with inflation eating up any interest earned at the moment, is something to consider if contributions are going to build up & be left alone for up to 18 years.