Junior Isas set for £3,000 annual limit
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Today’s Finance Bill will see the Government set the maximum investment limit for junior Isas at £3,000, according to reports.
Junior Isas are set to launch on November 1, 2011, and are designed to replace Child Trust Funds.
Investments in CTFs were limited to £1,200, but this will now be aligned with the £3,000 Isa limit. Junior Isas will have no government contributions into each child’s saving pots.
Junior Isas will have the money invested in them “locked in” until a child is 18, by which point it will become an adult Isa.
The Treasury says that around six million children will be eligible for Junior Isas at launch. Consultation on the draft regulations is set to continue until May.
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Readers' comments (1)
Dominic Thomas | 31 Mar 2011 10:40 am
I do wonder who these tax reforms are really aimed at..most of the population are not setting aside £300 a month for their pension, let alone their children. Child benefit removal and general reduction in the basic rate band, one cannot really argue that these "reforms" benefit the majority of the population. NEST is even capped at £300 a month... so it seems to me to be largely aimed at a small concession to the affluent.
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