Q. How much do we charge?
A. Our charges for Jump are low when compared with similar stock market investment plans. There is no initial charge or annual management fee and share dealing is fixed at 1% (plus 0.5% Govt Stamp Duty for share purchases), payable on all shares bought and sold. Please note there is a minimum dealing charge of £1.25.

Q. Do I have to keep my Plan for a set length of time?
A. Not at all. You can keep it for the length of time that suits you and your situation, but it is designed to be kept long term so it can grow as much as it can. (Unlike children, it is best left untouched for at least ten years to mature nicely.) If you do want to cash it in early, there is no sneaky penalty, just our normal 1% dealing fee.

Q. Can I vary the amounts of money I put into it?
A. Yes, of course. You can change the amount you regularly pay in at any time and you can add in lump sums whenever you like. There are no upper limits, just the £25 minimum for regular savers and £100 for lump sum investors.

Q. Does Jump pay a dividend?
A. Witan aims primarily to achieve capital growth rather than provide an income. However, saying that, your Jump plan will earn a dividend which is payable twice a year. Normally this is reinvested in more shares in the plan, but you can choose to have it paid to you. The dividend yield is around 2% – 2.5% and looks to increase in line with inflation.

Q. What about the Taxman?
A. Surprise, surprise: the tax position isn’t completely straightforward, and if you’re in any doubt about your own circumstances you should take advice on the subject. Here is a general summary based on our own understanding of current UK tax legislation and Inland Revenue Practice. On your application form you are asked to designate your investment with the initials of the child who will benefit from your generosity. Children can’t hold shares directly so this is a way you can make it clear that the investment is being made on their behalf not your own.

Q. Income Tax
A. Dividends from your Jump plan in excess of £1,000 will belong to you, as a parent, for tax purposes and taxed at your usual rate (£2,000 in the case of a joint parental application). If others contribute to the plan, the income will be taxed as the child’s, their allowance usually offsetting any liability.

Q. Capital Gains Tax
A. A child’s allowance should offset any liability in most cases. Capital gains tax tapers over 10 years, so tax payable reduces over time.

Q. Inheritance Tax
A. Investments under £3,000 are free from Inheritance Tax, as are regular payments made out of income. If you wish to invest large sums, it may be prudent to set up a Bare Trust for your plan. This eliminates any Inheritance Tax liability. To set one up, please call us on 0800 082 8180.