HL fund and share or JISA

[piraterach]

Hi. I'm hoping someone can give me a bit of advice as I'm getting in a muddle.

I currently have a children's savings plan with Baillie Gifford that is closing. They have offered to transfer to HL fund and share account.

What is the difference between the fund and share account and a JISA?

I want the account to be all shares (SMT), not fussed if it's in my name or the child's. And we will never be putting in enough to go over any tax brackets.

Hope someone can help TIA.

A JISA has tax advantaged benefits because growth within the account is free of income tax and capital gains tax. The HL fund & share account is just a general investment account with no tax saving benefits. The JISA has a maximum annual contribution limit but the general account doesn't, so if the value of the Baillie Gifford fund is more then £4368 you won't be able to wrap it all in a JISA straight away.

Both types of account can hold shares.

if the value of the Baillie Gifford fund is more then £4368 you won't be able to wrap it all in a JISA straight away.

I don’t think the limit will apply in this instance as it will be a transfer in, rather than investing new money in this tax year.

Op, I also have this dilemma, but have already got a HL ISA, so am trying to decide whether to move my BG money into that or a fund and share account.

From your point of view, will the money be moved in the child’s name, and if so, will HL set up a fund and share account for an under 18 (assuming the child is under 18) - I suspect not. You may not have the option of a F&S account, which will answer your question!

But as pp said, an ISA is generally better from a tax point of view.

Think again about HL. Their platform charges are higher than others and they have horrible transfer fees for ISAs. Also they dont allow individual selection of stock for dividend reinvestment.