A Children’s ISA is a long-term savings or investment account set up for a child. It allows money to be put aside in the child’s name, with any growth free from UK income tax and capital gains tax.

It is designed to build a financial foundation over time. The account is locked until the child turns 18, at which point they gain full control of the funds.

The Children’s ISA has been around since 2011 (when Children’s ISAs were created), and we like to make investing as easy as A, B, C.

Eligibility

A child can have a children’s ISA if they are:

• Under 18
  
• Living in the UK
  
• Not already holding a Child Trust Fund (unless it has been transferred)
  

Each child can have one Children’s ISA of each type: a cash ISA and a stocks and shares ISA. In practice, many families use one or the other, depending on how they want to save.

The account must be opened by a parent or legal guardian. The adult who opens it becomes the registered contact, responsible for managing the account until the child reaches adulthood.

Contribution rules and the 2025/26 allowance

For the 2026/27 tax year, the total amount that can be paid into a children’s ISA is £9,000.

This allowance applies per child, not per contributor. Multiple people can contribute, but the combined total must not exceed the annual limit.

Contributions can be made regularly or as one-off payments. There is no requirement to contribute every year, and unused allowance cannot be carried forward.

Who can open the account, and who can contribute

Only a parent or legal guardian can open a children’s ISA This is a fixed rule.

However, once the account is open, anyone can contribute. This includes:

• Parents
  
• Grandparents
  
• Other family members
  
• Friends
  

This structure allows wider family support while maintaining clear legal responsibility over the account.

If you are contributing on behalf of a child, the process usually links back to the existing Junior ISA set up by the parent or guardian.

The child themselves cannot access the money while under 18, and withdrawals are not permitted except in very limited circumstances.

What happens when the child turns 18

At age 18, the children’s ISA automatically becomes an adult ISA. Control of the account passes fully to the child.

At this point:

• They can withdraw the money
  
• They can continue saving or investing within an ISA wrapper
  
• The funds become part of their own financial decisions
  

There are no restrictions on how the money is used. The intention is long-term saving, but the outcome is ultimately in the hands of the account holder once they reach adulthood.

Who typically uses a Children’s ISA

A children’s ISA is used in a range of household situations.

For many parents, it forms part of a structured approach to saving for the future. Contributions may be regular, built into monthly budgets, or occasional, depending on circumstances.

Grandparents often play a supporting role. While they cannot open the account, they frequently contribute, particularly for milestones such as birthdays or at the start of the tax year. More detail on this can be found in guidance around contributing to a child’s ISA

Single-parent households may use a Children’s ISA as a way to create long-term stability. Contributions may be smaller or less frequent, but the principle remains the same: setting aside funds over time in the child’s name.

In all cases, the account provides a consistent framework. It separates the child’s savings from day-to-day finances and places a clear boundary around access.

How it works in practice

In practical terms, a children’s ISA is a simple structure.

An account is opened by a parent or guardian. Contributions are made over time, within the annual allowance. The funds grow free from UK tax, and the account remains locked until the child turns 18.

For those looking to understand the basics, the key points are consistent:

• It is long term
  
• It is tax-efficient within UK rules
  
• It is owned by the child
  
• It is controlled by an adult until maturity
  

To explore further, our children’s ISA page brings together the core details and next steps.