31st March 2022

Transferring a Junior ISA

As we approach the end of the tax year many people will be thinking about their investments in preparation for the next 12 months. Below are some points to consider if you are thinking about transferring a Junior ISA. 

Firstly, if you want to transfer a Junior ISA, there are limits on how many accounts can be active at any given time. You’re only allowed one cash and one stocks and shares account under your child’s name simultaneously. However, it is possible to swap to a different Junior ISA at any point. Do bear in mind the point above though; only one cash and Investment Junior ISA can be open at any time. 

Transfer Penalties

Investment Junior ISAs are a great way to save money for your child’s future, but some providers will charge a fee if you want to switch from one fund to another.

Why transfer a Junior ISA?

Transferring a Junior ISA can be a great way to take advantage of better potential returns projected by another provider. Alternatively, you could be unhappy with the current Junior ISA provider or, perhaps, want to invest more ethically or into a Shariah-compliant fund. 

Rules to consider when transferring a Junior ISA 

When it comes to transferring a Junior ISA there are some rules you do need to follow:

  • Only the registered account holder i.e. the child’s parent or guardian can make the transfer. 
  • Transfers between Junior ISA should always be made in full as you can only have one Junior Cash ISA and one Junior ISA open at the same time.
  • If you are transferring funds from a Cash ISA to a Junior Investment ISA (or vice versa) you can make part payments. 
  • When transferring funds from a Junior Investment ISA to a Junior Cash ISA your investments will need to have been sold. This could mean your investment could be worth less than you initially paid in. 
  • Every Junior ISA transfer should be made using the official Junior ISA transfer form. Failure to do so will result in the loss of the Junior ISAs’ tax-efficient status.

How do you transfer a Junior ISA?

Transferring a Junior ISA is often a very simple process. Most providers will have a transfer form on their website and the new provider will take care of the process for you. 

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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.

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