Paul Kennedy, head of tax planning at Fidelity Fundsnetwork, explains how Junior ISAs should be a welcome addition to the adviser's tax-planning armoury...
Children may not be restless with excitement at the launch of the Junior ISA, but advisers should be pleased it will sweep aside many of the tax problems and legal issues associated previously with investing for children and offer possibilities for added IHT and CGT planning. Like the adult ISA, investment returns from a Junior ISA will be free from personal liability to income and capital gains taxes. Likewise, the investment returns will not count towards the child’s personal income tax or CGT allowances, so those allowances remain available for other investments or any earnings that m...
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