Quirk in the rules: The tale of an ISA loophole for lucky kids

ISA and CTF rules give tax planning opportunity

clock • 3 min read

Laura Suter explores the loophole that means you can save £36,000 in an ISA per child each year

One thing I'll say for our complicated tax system is that if you dig around you can unearth some gems of loopholes that can really maximise your savings. And I've unearthed one that means you can put £36,000 into an ISA per child in as little as a few months. Most advisers will already be aware of the strange loophole that exists whereby a 16-year-old benefits from both a junior and adult ISA allowance. It means you can put £9,000 into a Junior ISA for the child and another £20,000 into a cash adult ISA, for the two years until they turn 18. But this latest one, which the wonderful te...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on ISAs

Fundment launches Lifetime ISA to 'deliver on adviser demand'

Fundment launches Lifetime ISA to 'deliver on adviser demand'

‘Advisers have been asking us for a Lifetime ISA'

Isabel Baxter
clock 11 July 2024 • 2 min read
Why the next government should ditch the British ISA

Why the next government should ditch the British ISA

British ISA failed to get a mention in Labour or Tory manifestos

Laura Suter
clock 20 June 2024 • 3 min read
Advisers would recommend Great British ISA if introduced

Advisers would recommend Great British ISA if introduced

Majority of advisers would recommend British ISA, Schroders finds

Isabel Baxter
clock 13 June 2024 • 1 min read