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Tax Centre

Children's investments are potentially subject to three taxes; Income Tax, Capital Gains Tax and Inheritance Tax.

Jump Junior ISA

The returns with a Junior ISA are tax efficient for the child/parent/donor

Income Tax - No additional tax to pay other than the standard 10% deducted at source on all dividends.

Capital Gains Tax - None.

Inheritance Tax - Potentially none, provided investment are made from disposable income of the donor and are therefore the child’s for tax purposes.

Jump Children’s Savings Plan

There are two ways you can set up a Jump Children's Savings Plan – Designate the account or open a Bare Trust;

  1. A Designated Account - the fund is yours, so you have access to it, and you can retain control of the account after the child has reached 18. The account is also yours for tax purposes. The account is 'designated' to the child, as children under 18 cannot own shares. There are no tax advantages.
  2. A Bare Trust - the fund is your child's, held for them by one or more trustees (usually the parents or grandparents). The fund is the child’s for tax purposes from the start. The child gains control of the fund when they reach 18.

If you would like to set up a Bare Trust, you will need to open a Jump Children's Savings account first and then complete a Declaration of Trust Form.

Jump Child Trust Fund

Please note that you can transfer your existing Child Trust Fund to Jump.

Income Tax - No additional tax to pay other than the standard 10% deducted at source on all dividends.

Capital Gains Tax - None.

Inheritance Tax - Potentially none, provided investment are made from disposable income of the donor and are therefore the child’s for tax purposes.

Please note that tax assumptions may change if the law changes, and the value of tax relief (if any) will depend upon your individual circumstances. Investors should consult their own tax advisers in order to understand any applicable tax consequences. The above section is based on Witan Investment Services Limited's understanding of Revenue law and practice as at April 2015. Neither Jump nor Witan Investment Services provide tax advice.

 

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