How the ISA changes will affect your Junior ISA

junior isa changes

As you may or may not be aware, during the recent 2014 budget the government introduced some major changes to the adult ISA (Individual Savings Account), which will take effect as of the 1st July 2014.

If you are not aware of this, the following news article may be worth reading in order to keep you up to date with the new changes.

Government announces changes to the ISA

If you are currently saving into a Junior ISA or are thinking about doing so, you may be wondering how the changes to the adult ISA will affect your child’s Junior ISA.

In short, there are no major changes to the structure of how you can save money for your child, as the Junior ISA will remain flexible. The tax-efficient status of the Junior ISA will also remain the same for the foreseeable future.

Increased savings opportunity

There will be a change to how much can be saved into a Junior ISA in the 2014/15 tax year.

As of 6th April 2014: The pre-planned increase of the Junior ISA allowance for the 2014/15 tax year will still take place. This will see an increase from £3,720 to £3,840.

As of 1st July 2014: There will be an additional increase to the annual Junior ISA allowance for the 2014/15 tax year, this will take the annual allowance to £4,000. This will mean that you will be able to save up to £4,000 for your child over the 2014/15 tax year in a Junior ISA, but you will have to wait until 1st July 2014 in order to get access to the full allowance.


The flexibility of the Junior ISA will remain the same, and you do not need to worry about how this will affect you.

You will still have the option of saving the entire Junior ISA allowance of £4,000 in a Cash Junior ISA, a Stocks and Shares Junior ISA or any combination of the two.

Any money you have in a Cash Junior ISA can be transferred to a Stocks and Shares Junior ISA, and vice versa.

Shepherds Friendly will send a further update to its members as soon as more details are released.

If you have any other questions about the NISA or Junior ISA, you can contact our member support team via telephone by calling 0800 526 249.

Please note: All information within Your Resource Centre is correct at the time of publication, and we make every effort to keep content accurate. However sometimes information may be out of date. You should not rely on this information when making financial decisions as no financial advice has been given. The information reflects the view of the author and not that of Shepherds Friendly Society.

If you’re not sure what to do when making financial decisions then you should consult a financial adviser, who will likely charge for any advice that is given.

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