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Treasury consults over “junior Isas”

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The Treasury is consulting the industry over plans to launch “junior Isas” for children as a replacement for child trust funds.

The Treasury has issued an informal paper to stakeholders about creating children’s savings accounts and will study responses as part of its decision on whether to launch the schemes.

Money Marketing understands the new schemes would allow tax-free investment in cash or stocks and shares up to an annual limit and funds would be owned by the child but locked-in until the child reaches 18. They would differ from child trust funds in that there would be no Government contribution payments.

The coalition Government has previously announced plans to scrap child trust fund accounts, ending the scheme for children born after January 2011.

A Treasury spokesman says: “The Government is committed to encouraging saving. We are currently discussing with relevant stakeholders the possibility of introducing a tax-free children’s savings account.”
 

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. PEPs- Bad (Tory product) ISAs-Good (Labour product) Personal Pensions- Bad (Tory product) Stakeholder pensions- Good (Labour product) and now Child Trust Funds- Bad (Labour product) Childrens ISAs- Good (Tory Product)

    What a pathetic bunch of losers some of these politicians are why can’t they leave well alone!?

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