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Junior individual savings accounts (junior ISAs), introduced in November 2011, were designed to be an alternative to the child trust fund but without the Government contribution to the fund.

The main features of the junior ISA are that:

1. •

   it is available to a child under 18 who does not have a child trust fund account

2. •

   as with adult ISAs, there are two types of junior ISA accounts: (a) cash and (b) stocks and shares

3. •

   funds placed in the account(s) are owned by the child and are locked in until the child reaches 18 years of age

4. •

   the child is able to hold only one junior cash ISA account and one junior stocks and shares ISA account at any one time (although transfers between accounts are possible)

5. •

   all income and gains within the account(s) are tax-free and losses will not be allowable for tax purposes

6. •

   annual contributions are capped, with the junior ISA allowance for the tax years 2020/21 to 2029/30 being £9,000 per year

This guidance note considers junior ISAs. For