BSA welcomes news of forthcoming launch of Junior ISAs
The BSA welcomed the news today from HM Treasury that Junior ISAs are expected to be available from November 2011.
Children under 18 who do not have a Child Trust Fund are eligible for a Junior ISA. HM Treasury estimates that 6 million under 18s will be eligible for a Junior ISA at launch, with a further 800,000 per year after that. The £3000 annual tax free savings (higher than the previous £1200 annual limit for the Child Trust Fund) limit can be split between cash and stocks and shares, with transfers both ways being permitted. Children can have one of each type of account.
No withdrawals can be made from Junior ISAs before the age of 18, when the accounts mature, and roll into an adult ISA. Returns are tax free, and any person or organisation can make contributions.
Adrian Coles, Director-General, BSA commented “Mutuals are well placed to offer Junior ISAs as they hold 35% of the adult cash ISA market, and provide the majority of cash CTFs. The Junior ISA scheme appears to be quite straightforward and similar to the adult ISA which is well understood by savers. We are examining the regulations that will govern Junior ISAs with a view to ensuring they deliver a flexible, tax free way to provide long term savings for children.”
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Notes to Editors
1. A link to the HM Treasury press release can be found here – www.hm-treasury.gov.uk
2. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 48 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
3. Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
4. Contact – Fiona Cornes, fiona.cornes@bsa.org.uk / 020 7520 5926
Katie Wise (nee Errington)
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway
London
WC2B 6UJ
Tel: 020 7520 5904
Fax: 020 7240 5290
Email: katie.wise@bsa.org.uk
Web: www.bsa.org.uk
Join us at the BSA Annual Conference in Birmingham, 4 & 5 May 2011.
www.bsaconference.org
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