The tax allowance for a Junior ISA in the 2023/24 tax year is £9,000. This is due to remain the same for the 2024/25 tax year.  At the end of the tax year, your allowance resets, however any unused allowance from the previous year will not carry over.

Only a parent or legal guardian residing in the UK can open a Junior ISA on behalf of their child. Only the ‘registered contact’ can manage the account.

The registered contact is the only person who can:

• change the account, e.g. adjust risk levels  or investment styles 
• change the account provider  
• report changes of circumstances, e.g. change of address 
  
  Those who live outside of the UK can only become a registered contact if they are a crown servant (in the UK’s armed forces, diplomatic service or overseas civil service) and the child depends on them for care. Both criteria must apply.
  
  To open a Nutmeg JISA, the account holder must contribute a minimum of £100. Note, you must have an existing account with Nutmeg to open a JISA. If you’re opening a new Nutmeg account for the purpose of opening a JISA, the account can remain unfunded.  

The money in a Junior ISA belongs to the child in all but exceptional circumstances.

When the child turns 16, they may apply to become the registered contact and manage the Junior ISA themselves. However, they cannot withdraw the money until they’re 18.  

There are two types of Junior ISA:  

• In a cash Junior ISA, you do not pay tax on interest. Although cash is guaranteed not to fall in value, annual inflation will have an adverse impact on its value.  
  
• In a stocks and shares Junior ISA, you pay no tax on capital growth or dividends. Investments are riskier but may mean growth is potentially greater than a cash product. However, unlike cash, the value of a stocks and shares Junior ISA can go up or down.  

A child can only have one stocks and shares Junior ISA. But a parent or guardian may open multiple Junior ISAs for different children. 

Anyone, including parents, friends and family, can contribute on behalf of the child, provided total contributions fall below the annual Junior ISA limit.

Any contributions to a Junior ISA are not factored into your annual ISA allowance. Nor do they count towards your Lifetime ISA limit.

A registered contact may transfer either a Junior ISA or Child Trust Fund from another provider to Nutmeg. If you wish to transfer your Nutmeg Junior ISA to a different provider, you’ll need to approach the new Junior ISA provider and request the transfer.

The child can take control of the account when they’re 16 but cannot access the money until they turn 18. If not withdrawn at age 18, the money rolls into an adult ISA. 

You cannot have a Junior ISA as well as a Child Trust Fund (CTF). If you want to open a JISA you must transfer the CTF in. 

A Child Trust Fund is a long-term tax-free savings account for children. The CTF scheme is now closed, so you cannot apply for a new one. But people with existing CTFs can continue to contribute £9,000 a year into them.  

A Child Trust Fund (CTF) is a tax-efficient savings account for children for long-term saving. The CTF scheme is now closed, so you can no longer apply, however, people with existing CTFs can continue to contribute up to £9,000 a year into them.