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Tax-free allowance Increase

The tax-free allowance for Child Trust Funds and Junior ISAs was due to increase to £3,840 from the new tax year on the 6th April, however there was welcome news from the Chancellor in his budget statement that the limit will increase to £4,000 a year from July 2014. The result is that there will be two rises in the same tax year, so now there the limit is £3,840 until July, when it will rise to £4,000.
There was no mention of plans to allow parents with Child Trust Funds the choice of transferring them into a Junior ISA from April 2015, so these look to be proceeding as announced by the Chancellor at the end of last year.
Child Trust Funds have become uncompetitive when compared to Junior ISAs since the Government stopped making an initial contribution into them with millions of children trapped in these “zombie” accounts.
Since 2011, children under the age of 18 have been allowed to open Junior ISAs instead, but parents with Child Trust Funds were not allowed to open Junior ISAs for their children, or transfer the money across.
The advice to parents and grand-parents is to continue saving in CTFs until April 2015, when they can be converted into ISAs.
To help you find out where your Child Trust Fund account is held you can complete a form on the HMRC website. http://www.hmrc.gov.uk/tools/childtrustfundclaim/ctfaccount.htm
To see why you should consider transferring to The Children’s ISA visit our homepage and for more information on the range of funds available visit: www.thechildrensisa.com

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Email: hello@TheChildrensISA.com

Address: 1 Lowry Plaza, The Quays M50 3UB

The Children's ISA

© The Children's ISA Ltd 2020. All rights reserved.

The website and the information contained therein should not be regarded as an offer or solicitation to conduct investment business in any jurisdiction other than the UK. Past performance is not necessarily a guide to future performance and the value of your investment may fall as well as rise, and any income received in the form of dividends may fluctuate. You may not get back the full amount when the account is closed. If paying regular monthly contributions please bear in mind that if contributions are not maintained you will be less likely to achieve the investment amount that was originally projected.

The information on this website is not advice, it is provided solely to enable you to make your own investment decisions. The investments and / or investment services referred to may not be suitable for all investors. If you are unsure of the suitability of any investment, you should contact Cottons Financial Planning for advice.

The Children’s ISA Limited is authorised and regulated by the financial services authority. (FCA No: 563043)
The Children’s ISA Limited is a company registered in England and Wales.
Registered Office: 1 Lowry Plaza, The Quays Manchester, M50 3UB. Registered Company Number: 07486015

The Children's ISA is provided by Avalon Investment Services Ltd.
Avalon Investment Services Ltd. is authorised and regulated by the financial services authority.
Avalon Investment Services Ltd. is a company registered in England and Wales.
Registered Office: 2 Market Place, Tetbury, Gloucestershire, GL8 8DA.