The government will launch a 'Junior Isa' for children next autumn to help fill the gap left by Child Trust Funds (CTF).
All returns on the Junior ISA will be tax free but unlike CTFs there will be no government contributions. Investments will be available in cash or stocks and shares and funds placed in the account will be owned by the child. Annual contributions will be capped and the money will be locked in until the child reaches adulthood. The government will now work with stakeholders to finalise the structure of the accounts, which it plans to have up and running by autumn 2011. Financial secretary to the Treasury, Mark Hoban, says: "The introduction of this new account means we can ...
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