Junior ISAs

Junior ISAs are a flexible, simple and tax-efficient way for you to save for a child’s future. Investments in a Junior ISA can only be accessed by the child when they reach the age of 18.


The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested. 

Junior ISAs are available to UK resident children who do not have a Child Trust Fund (CTF) account. However, Parents and Guardians now also have the choice to transfer a child’s existing CTF into a Junior ISA.

Should you already have a CTF account or want to invest more than the Junior ISA limit, there are alternative routes to access the long-term growth potential through The M&G OEIC or The M&G Savings Plan.

A Junior ISA must be opened by someone with parental responsibility or legal guardianship for the child. This person will be the ‘Registered Contact’ for the account.

How do Junior ISAs work?

  • The Registered Contact will have responsibility for the investment
  • You can invest up to £9,000 in a Junior ISA until the end of the 2021/2022 tax year
  • You can invest by regular monthly payments or a lump sum at any time
  • Anyone can gift or contribute money (including the child)
  • You can switch from a cash Junior ISA to a stocks and shares Junior ISA and back again (please note that M&G only offers a stocks and shares Junior ISA)
  • When the child turns 16 they can choose to take control of their Junior ISA account
  • In addition, 16 – 18 year olds are permitted to open a Junior ISA and a cash ISA in the same tax year meaning they can choose to invest up to £29,000 tax-efficiently (please note that The M&G ISA is a stocks and shares ISA)
  • The money can only be accessed by the child when they turn 18

Who is eligible?

  • Children living in the UK who do not have a CTF account
  • The account must be opened by a parent or legal guardian
  • Children living in the UK who have an existing CTF account and wish to transfer to a Junior ISA

Is a Junior ISA subject to tax?

  • Any returns generated are free from personal income and capital gains tax
  • The annual Junior ISA allowance of the Registered Contact or any Third-Party Contributors is not affected
  • You don’t have to declare a Junior ISA on your personal tax return
Tax rules for both Junior ISAs and ISAs may change in the future and their tax advantages depend on your individual circumstances.
 

How do Junior ISAs and ISAs compare?

Junior ISA
ISA
From 6 April 2021 to 5 April 2022 investment limit: £9,000
From 6 April 2021 to 5 April 2022 investment limit: £20,000
You can hold one cash and one stocks and shares Junior ISA at a time, with the maximum £9,000 split between them to suit you.      From 6 April 2021 to 5 April 2022 you can invest up to £20,000 in stocks and shares, cash, an Innovative Finance ISA, a Lifetime ISA† or a combination.
Once invested in either a stocks and shares Junior ISA or a cash Junior ISA, with an investment provider, each annual allowance must be invested with this same provider unless the Junior ISA as a whole is transferred elsewhere.

You can’t invest each annual allowance with different providers unless a formal transfer of the investment has taken place.
Each year, you can choose to invest your annual ISA allowances with different providers. You can also transfer previous years’ ISAs between providers at any point, without affecting your allowance for the current tax year. However, some providers may charge for this service. Whilst your investment is being transferred it will be out of the market for a short period of time and will not lose or gain in value.
You can switch from cash to stocks and shares and back again for greater flexibility. You can transfer from a cash ISA into a stocks and shares ISA and vice versa as often as you like.
Anyone can contribute into the Junior ISA as long as the total of all contributions does not exceed the annual limit. However, contributions can’t be returned and will belong to the child (the account holder). You must make subscriptions with your own money.
At 16, a child can open their own Junior ISA. N/A
Contributions are not accessible until the child turns 18, when the account automatically becomes an ISA. Contributions can be accessed at any time.


Junior ISAs are a flexible way to save for a child. Just like an ISA, they can hold equities*, bonds**, cash and even property shares. However, remember that the savings in a Junior ISA are locked in until the child turns 18.

Tax rules for both Junior ISAs and ISAs may change in the future and their tax advantages depend on your individual circumstances.

The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

† From April 2017, 18-40 year olds will be able to open a Lifetime ISA and pay in up to £4,000 each tax year. They will be able to continue making contributions up to the age of 50. The government will add a 25% bonus to all contributions to a Lifetime ISA within the limits. However, it is important to note that the Lifetime ISA will count towards your annual ISA allowance.

* Shares of ownership in a company.

** A loan, usually taken out by a government or company, which normally pays a fixed rate of interest over a given time period, at the end of which the loan is repaid.

The M&G Junior ISA

A Junior ISA is a long-term investment that your child could hold for up to 18 years, so it makes sense to choose an expert in the field. At M&G, we have over 85 years of investment experience and the size and the scale of resource to give your child a head start with their money.

We believe that Junior ISAs could have a key role in every parent or guardian’s long-term financial plan for their children.

Please note that M&G only offers a stocks and shares Junior ISA.

Why choose The M&G Junior ISA?

  • Invest from as little as £10 per month
  • Pay no entry charge and no exit charges (an ongoing charge will apply)
  • Choose from our extensive range of expertly managed funds

The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

Funds available

You can invest in any of the following funds in The M&G Junior ISA. Most funds offer the choice of two share types – Income or Accumulation. Only income shares (with income reinvested) are available for the majority of funds offered within The M&G Junior ISA.

Click on the fund names to find out more about each fund.

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested. Please be aware, your investment may increase or decrease as a result of currency fluctuations.

Funds available within The M&G Junior ISA:

Share classes and charges

Investment limits (per fund)

Investment minimums (per fund)
Minimum lump sum
£500
Minimum monthly amount
£10
Minimum additional lump sum
£100
Minimum additional monthly amount
£10

Available share classes

Only the nominated share class for each fund is available for the majority of funds in The M&G Junior ISA. Please refer to the Fund availability and fund types table (on page 4-7) of the Important Information for Investors document for more information.

Please note: Sterling Class X Shares are no longer available for new investments in The M&G Junior ISA. 

Charges

Entry and exit charges do not apply to investments in M&G funds Sterling Class shares. However, please note that an ongoing charge will apply. For information on all our charges, please refer to our Fund Charges page.

Target Market Information

This document explains who we believe the product is, and is not, suitable for. This is based on M&G’s opinion and doesn’t take into account your individual circumstances.

Invest now

For information on making an investment with M&G, please visit our Invest with M&G page.

We don’t give financial advice, so you should speak to a financial adviser if you need help deciding if an investment is right for you.

Transfer your Junior ISA or CTF to M&G

You can transfer your existing Junior ISAs or CTF with other providers to M&G.

Please note, M&G will not charge you to process your transfer when we receive an instruction, however your current provider may apply a charge when you transfer your investment. Whilst your investment is being transferred it will be out of the market for a short period of time and will not lose or gain in value.

For more information on transferring to M&G, please visit our ISA Transfer page.

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