Your IndustryNov 20 2014

Guide to Child Trust Funds and Junior Isas

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CPD
Approx.40min

    Guide to Child Trust Funds and Junior Isas

      pfs-logo
      cisi-logo
      CPD
      Approx.40min
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      Introduction

      By Emma Ann Hughes
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      Writing cheques to parents to invest in CTFs for their youngsters was axed by the the government and Junior Isas, which still offer the benefits of tax-sheltered growth but did not incur costs in the form of vouchers.

      The government initially blocked parents from transferring money from a CTF into a Junior Isa, but soon millions of young savers will able to switch the product their cash is in.

      George Osborne, chancellor, announced at the end of 2013 that the government will introduce transfers in April 2015. The long-awaited announcement promised to end a two-tier system – after a sixteen month wait - for children’s saving.

      Many child trust fund investors found themselves ‘locked’ into a product because there are few alternatives but now they will have the freedom to invest in a far wider range of vehicles.

      This guide explores the pros and cons of CTFs and Junior Isas, and whether you should recommend your clients move their children’s savings pots.

      Supporting material was provided by: Andrew Gillespie, sales and marketing director of Family Investments; Rob Morgan, pensions and investments analyst at Charles Stanley Direct; Sarah Pennells, founder of finance website for women SavvyWoman.co.uk; Anna Bowes, director of Savingschampion.co.uk; Ian Sayers, director general of the Association of Investment Companies (AIC): HM Revenue & Customs; and Halifax.

      In this guide

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